The ACCC has issued a draft determination proposing to re-authorise arrangements which allow 7-Eleven to continue to enter into agreements with its franchisees to either temporarily close or reduce the trading hours of certain stores, either operated by those franchisees, or through its sister entity, Convenience Holdings Pty Limited. The proposed re-authorisation would continue to have conditions that require 7-Eleven to notify the ACCC of the Franchisees it proposes to approach for temporary store closure or a reduction in hours, and the stores (both corporate owned and franchised) which will be closed or have reduced hours.
The arrangements were previously authorised by the ACCC last year in the context of the ongoing difficulties faced by 7-Eleven and its franchisees due to reduced consumer demand as a result of the COVID-19 pandemic. This original authorisation was due to expire on 31 March 2021.
The draft determination follows the interim authorisation the ACCC granted and enables the existing (previously authorised) arrangements to continue with the same conditions while the ACCC considers the substantive application.
The ACCC proposes to grant re-authorisation for a period of 6 months from the date the final determination comes into effect.
The ACCC invites submissions in relation to this draft determination by 22 July 2021. The ACCC will then make its final decision.
Copies of the application for re-authorisation and the ACCC’s draft determination are available on our public register.