ACCC allows independent retailers of office products to collectively bargain with suppliers

The Australian Competition and Consumer Commission has issued a determination authorising* Office Choice Limited, Office National Limited and Office Products Depot Limited, together the Office Group, to collectively bargain the terms and conditions on which wholesale suppliers of stationery and office products will supply them and their franchisees.

Office Choice and Office National are franchisors of chains of independently owned franchises selling retail office supplies across Australia. Office Products Depot runs a similar franchise business in New Zealand, sourcing some of their stock from Australian suppliers.

Negotiating terms and conditions for the supply of office products through a single process, may enable Office Group Members to source these products at a lower cost than they might otherwise be able.

The collective bargaining arrangements are also likely to result in transaction cost savings for the Office Group and wholesalers.

"The ACCC believes that the potential anti-competitive effect of the arrangement is limited by the voluntary nature of the arrangement, the comparative size of the bargaining group and competition for office products at the wholesale and retail levels," ACCC Chairman, Mr Graeme Samuel, said.

"Individual members of the Office Group remain free to negotiate individual agreements with suppliers outside of the collective bargaining arrangement.

"The ACCC issued this final determination within three months of receiving the Office Group's application for authorisation. This outcome demonstrates the ACCC's continued commitment to deal expeditiously with collective bargaining matters."

Copies of the final determination will be available on the ACCC's website.

Background

*Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974. Broadly, the ACCC may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment. The ACCC conducts a comprehensive public consultation process and issues a draft determination before making a decision to grant or deny authorisation.