The Australian Competition and Consumer Commission has issued a notice to revoke an exclusive dealing notification* lodged by GeelongPort Pty Limited.
"The ACCC believes that the exclusive dealing arrangement being conducted by GeelongPort substantially lessens competition and is not in the public interest. Therefore, the ACCC is acting to remove the immunity provided by the notification," ACCC Chairman, Mr Graeme Samuel, said today.
The arrangement involves GeelongPort providing access to Lascelles Wharf in Geelong on condition that customers use GeelongPort's shore-based figee cranes, when they are available, to unload fertiliser and other dry bulk cargos. Customers are also required to use GeelongPort's other bulk discharge equipment, hoppers and grabs, in conjunction with the figee cranes.
"The ACCC has decided that the conduct described in the notification restricts the ability of GeelongPort's customers to choose to use ships' gear in conjunction with hoppers and grabs supplied by mobile providers, who operate in competition with GeelongPort.
"While the notified conduct is likely to generate some public benefit, largely in the form of improving the operational efficiency of Lascelles Wharf, the ACCC is not satisfied that these benefits outweigh the detriments caused by the lessening of competition.
"In particular, the ACCC notes that congestion has not been a problem at Lascelles Wharf to date," Mr Samuel said.
More information regarding the notification and a copy of the notice is available at the ACCC website by following the links to Public registers and Authorisations and notifications registers and Exclusive dealing notifications register.
* Parties may obtain immunity from legal action in respect of exclusive dealing conduct by lodging an exclusive dealing notification with the ACCC. Immunity is conferred automatically after the notification is validly lodged. The ACCC may issue a notice revoking an exclusive dealing notification if it is satisfied that the conduct has the purpose or effect, or is likely to have the effect, of substantially lessening competition in any market and that the benefit to the public that has resulted or is likely to result from the conduct would not outweigh the detriment to the public likely to result from the conduct. Before issuing such a notice, the ACCC must first issue a draft notice outlining the reasons why it proposes to revoke the notification.
