ACCC allows Victorian Football Federation uniform arrangements
The Australian Competition and Consumer Commission has issued a decision in relation to the exclusive dealing notification* lodged by the Football Federation Victoria.
"The ACCC has decided not to take further action at this time in relation to the conduct associated with the FFV's apparel licensing program," ACCC Chairman, Mr Graeme Samuel, said today.
The FFV governs, administers and regulates football in Victoria. The FFV was formally known as the Victorian Soccer Federation, changing its name in 2005. The FFV lodged the notification in respect of its requirement that the 450 plus football clubs competing in its various competitions only use apparel (uniforms) manufactured by a restricted list of third party suppliers licensed by the FFV.
On 4 July the ACCC issued a draft notice proposing to revoke the immunity for conduct associated with the program. At the time, the ACCC was not satisfied that the benefits associated with the program outweighed the likely detriment generated by the program.
"In particular, the ACCC was concerned with the FFV requiring clubs to replace uniforms purchased from licensed suppliers within 12 months if the suppliers licence was not renewed. This imposed significant additional costs on affected clubs, particularly those in lower grades who could be required to replace perfectly good uniforms."
The FFV has now abolished this requirement.
"The ACCC was also concerned that the licensing program increases the cost of uniforms to clubs and restricts their freedom to choose who they buy uniforms from."
The FFV sought to address this concern by increasing the number of licensed suppliers from four to eight where practical.
The changes to the licensing program made by the FFV in response to the draft notice have reduced the ACCC's concerns.
"Having regard to these changes, and the benefits generated by the program, particularly revenue generated by the program which is able to be used promote and develop the sport, the ACCC does not propose to revoke the notification at this time," Mr Samuel said.
While no further action is proposed at this time, the ACCC will monitor any issues arising from the ongoing implementation of the licensing program. In particular, the ACCC would be concerned if the implementation of the proposed changes does not sufficiently address the issues raised in the draft notice.
As with any notification, the ACCC may review the notification at any time should such concerns arise.
More information regarding the notification and a copy of the assessment document are available on the ACCC's website, by following the links to Public registers, Authorisations and notifications registers and Exclusive dealing notifications register.
* Parties may obtain immunity from court action in respect of third line forcing conduct by lodging an exclusive dealing notification with the ACCC. Immunity is conferred automatically two weeks after the notification is validly lodged. The ACCC may issue a notice revoking the notification if it is satisfied that the likely benefit from the conduct or proposed conduct will not outweigh the likely detriment from the conduct or proposed conduct. Prior to issuing a notice revoking a notification the ACCC must issue a draft notice setting out its reasons for proposing the revoke the notification.
