ACCC decides restrictive ice hockey policy is anti-competitive
The Australian Competition and Consumer Commission has issued a notice revoking Ice Hockey Australia's notification, under which its members are prevented from playing in ice hockey competitions that have not been approved by Ice Hockey Australia.
Ice Hockey Australia proposed to suspend or expel any member who participated in a non-sanctioned Australian or international ice hockey game. The policy applies to all players and officials, including referees and coaches.
"The ACCC is concerned that the notified conduct has the effect, or is likely to have the effect, of substantially lessening competition by creating barriers to entry for new ice hockey leagues and making it difficult for existing leagues to remain competitively viable," ACCC chairman Graeme Samuel said.
"It also harms players and officials by limiting their ability to participate in ice hockey competitions of their choosing."
IHA's submission to the ACCC set out concerns in relation to potential loss of its International Ice Hockey Federation membership in circumstances where its ability to control ice hockey in Australia is affected.
"In issuing the notice, the ACCC is of the view, however, that its decision does not affect IHA's ability to effectively administer the sport of ice hockey at the national level and operate as the governing body for the sport in Australia."
This notice removes the protection from legal action that is afforded by the notification. If no application for review of the notice is made to the Australian Competition Tribunal, this legal protection ceases to be in force on 2 April 2010.
Businesses may obtain protection in relation to conduct that might be at risk of breaching the exclusive dealing provisions of the Trade Practices Act 1974 by lodging a notification with the ACCC. Once lodged, protection for the notified conduct begins automatically, or in the case of third line forcing, after 14 days.
The ACCC may revoke a notification (other than third line forcing) if it is satisfied that the conduct has the purpose, effect or likely effect of substantially lessening competition and that it does not deliver a net public benefit. Before issuing a revocation notice, the ACCC must issue a draft notice setting out its reasons for proposing to revoke the notification.
