The Australian Competition and Consumer Commission has reauthorised certain regulations governing the operation of the Australian Paper Clearing System.
The ACCC has also issued a draft determination proposing to reauthorise certain regulations governing the operation of the Bulk Electronic Clearing System. The APCS and BECS are managed by the Australian Payments Clearing Association.
The APCS coordinates, manages and ensures the implementation and operation of policies and procedures for the processing of payments made using paper instruments, primarily cheques.
BECS manages the conduct of the exchange and settlement of bulk direct entry electronic low value transactions. BECS allows approved organisations to make arrangements with their financial institution to debit and/or credit large numbers of customers' accounts on a regular basis.
APCA has sought reauthorisation for the suspension and termination provisions of the APCS and BECS regulations. These provisions have been authorised by the ACCC, and its predecessor, the Trade Practices Commission, since 1993 and 1994 respectively.
The ACCC considers the suspension and termination provisions of the APCS and BECS regulations continue to produce a public benefit by helping to maintain the security, efficiency and integrity of the paper clearing and bulk electronic transaction clearing processes.
The ACCC considers that the suspension and termination provisions of the APCS and BECS regulations are not unreasonable and notes that they have never had to be used. Further, there are checks and balances in place to prevent the misuse of the suspension and termination provisions for anticompetitive purposes.
The ACCC's decision to reauthorise the suspension and termination provisions of the APCS regulations affirms its draft decision released in March 2010.
The ACCC will now seek comments on its draft decision to reauthorise the BECS regulations and expects to make a final decision in May.
In December last year the ACCC also reauthorised the suspension and termination provisions of APCA's Consumer Electronic Clearing System regulations (which covers ATM and EFTPOS transactions).
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. Interim authorisation allows the parties to engage in the conduct prior to the ACCC considering the substantive merits of the application.
More information regarding the APCS application, including the reasons for the ACCC's decision, will be available by following the Public registers link on the ACCC's website, www.accc.gov.au/AuthorisationsRegister and by following the links to this matter.
The ACCC's draft determination about the BECS regulations and information about making a submission will also be available from the ACCC website, www.accc.gov.au/AuthorisationsRegister and by following the links to this matter. Parties wishing to make submissions should do so by 7 May 2010.