The ACCC has granted authorisation to allow the Australian Banking Association (ABA), its member banks, Australia Post, retailers, supermarkets and other industry participants to collaborate so they can ensure there is continuity of cash-in-transit services.
The ACCC’s authorisation allows the parties to collaborate and prepare for any suspension or disruption of cash-in-transit services.
“It is important that in the event of any interruption to cash-in-transit services there are safeguards and measures in place to protect businesses and consumers,” ACCC Deputy Chair Mick Keogh said.
“Our authorisation today, allows the ABA, its member banks and other industry participants like Australia Post to make this to happen.”
“This authorisation includes conditions that the ABA provides regular reports to the ACCC about the discussions and steps taken to engage in consultation with industry participants across Australia,” Mr Keogh said.
In relation to a further ABA application, the ACCC has decided to grant interim authorisation to allow the ABA, banks and retailers to provide financial contributions to Armaguard, discuss, share information, and reach in-principle agreement on operational sustainability.
This interim authorisation also allows parties to agree on efficiency measures and discuss, share information and reach, but not implement, in-principle agreement about an independent pricing mechanism.
“This interim authorisation includes conditions requiring transparency of discussions,” Mr Keogh said.
“A key consideration in both of the ACCC’s decisions was the importance of facilitating continued access to cash in remote and regional areas where consumers are more likely to be high cash users. Remote and regional areas also have fewer bank branches and so, often, the only access is through non-bank organisations such as Australia Post, clubs and retailers.”
The interim authorisation includes conditions relating to reporting on consultation, to ensure these perspectives are heard. Compliance with these conditions will be a key factor the ACCC will consider in reaching its view on the balance of public benefits and detriments in our draft and final determinations.
Further information about the ACCC’s determination is available here and further information about the ACCC’s interim authorisation is available here.
Notes to editors
The ACCC’s role is to consider requests for exemptions from competition laws that may be breached, to enable competitors to collaborate on such arrangements.
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act 2010 (CCA).
Broadly, section 91 of the CCA allows the ACCC to grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Background:
Cash-in-transit services involve providing cash transport, management, and processing services. These services are provided to banks, retailers, and independent ATM operators
On 13 June 2023, the ACCC granted merger authorisation to Linfox Armaguard and Prosegur Australia to combine their cash distribution, management and other businesses in Australia and accepted a court-enforceable undertaking, which is a condition of the merger authorisation. Following this merger, Armaguard is the major supplier of cash-in-transit services in Australia.
On 27 May 2024, the ACCC granted authorisation to the ABA, the Customer Owned Banking Association, banks, retailers and other industry participants to allow them to continue developing responses to support the distribution of cash across Australia.
On 3 July 2024, the ACCC granted interim authorisation with a condition to allow the ABA, banks and retailers to provide financial contributions to Armaguard.
On 1 August 2024, the ACCC issued a draft determination proposing to grant authorisation with conditions to the ABA, its member banks, and other industry participants to facilitate business continuity planning in the cash-in-transit industry.