ACCC grants interim approval to Liquor Stax to collectively bargain
The Australian Competition and Consumer Commission has granted interim authorisation to allow Liquor Stax Australia to collectively bargain with a range of suppliers.
Interim authorisation avoids unnecessary disruption to the industry while the ACCC undertakes its public assessment of the application.
Liquor Stax is seeking authorisation on behalf of a group of around 200 small businesses comprising liquor merchants and hotels, to collectively bargain with around 60 suppliers of inputs such as alcohol, cigarettes, poker machines and confectionery as well as services such as advertising, insurance and communications. Member participation in any given transaction is voluntary and imposes no restrictions on a member’s choice of suppliers.
The ACCC has sought submissions on the application from interested parties. Submissions close on 30 July 2010.
Interim authorisation commences immediately, and will remain in place until the date that the ACCC’s final determination comes into effect or is revoked.
The ACCC may review its decision on interim authorisation at any time. The ACCC's decision in relation to interim authorisation should not be taken to be indicative of whether or not final authorisation will be granted.
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.
