The Australian Competition and Consumer Commission has objected to a proposal by five car rental companies, Hertz, Thrifty, Avis, Budget and Europcar, to collectively negotiate with Perth Airport.
"The ACCC considers that the arrangements may reduce competitive tensions between the car rental companies by facilitating sharing commercially sensitive information between group members,” acting ACCC chairman Michael Schaper said.
"The arrangements could also put other car rental companies which are outside the group at a competitive disadvantage, including any other car rental company operating at Perth Airport.
"The ACCC has always recognised that collective bargaining can operate successfully when there are mutual benefits for the target and the bargaining group. However, because taking part in collective negotiations is voluntary for both parties, such negotiations are unlikely to be successful unless both achieve a benefit."
"In this case it is difficult to see how collective bargaining will be successful and achieve the public benefits claimed by the companies. Moreover, the arrangements would still facilitate information sharing between the car rental companies, which could have an associated impact on competition," Dr Schaper said.
Shortly after the notification was lodged in early May the ACCC issued a draft objection notice, preventing the car rental companies collectively bargaining pending a final decision. At the time the ACCC was concerned that collective bargaining could undermine a competitive Request for Proposal process to allocate counter space and parking bays to car rental companies that Perth Airport was then undertaking.
The car rental companies have now lodged offers for new car rental licences in accordance with this process.
Notwithstanding this, the group members continued with their application to collectively bargain as they wish to make collective representations to Perth Airport about possible variations to or renegotiation of licences and about other matters.
More information regarding the notification and copies of the objection notice are available from the ACCC's website www.accc.gov.au/CollectiveBargainingRegister or by emailing the Adjudication Branch at adjudication@accc.gov.au.
Businesses may obtain protection in relation to collective bargaining conduct that might risk breaching provisions of the Trade Practices Act 1974 by lodging a collective bargaining notification with the ACCC. Once lodged, protection for the notified conduct begins automatically 14 days after the notification was validly lodged.
The ACCC may object to a collective bargaining notification containing a cartel provision if it is satisfied that the likely benefit to the public from the conduct will not outweigh the likely detriment to the public.