On 12 May 2006, James Hardie Australia Pty Ltd withdrew a notification concerning its proposed distribution policy for the supply and re-supply of its fibre cement products.
James Hardie lodged a notification with the ACCC on 23 December 2005 as implementation of the policy may constitute exclusive dealing under the Trade Practices Act 1974*. The policy attempted to restrict the re-supply of James Hardie's fibre cement products to competitor fibre cement manufacturers and associated distributors; and require distributors who sold James Hardie's new technology differentiated products to acquire all of their fibre cement products from James Hardie.
The decision by James Hardie to withdraw the notification follows the release of the ACCC's draft notice, on 5 April 2006, proposing to revoke the notification. The ACCC had formed the preliminary view that the new distribution policy would have the effect of substantially lessening competition in the market for the manufacture and supply of fibre cement products, and that it would not result in a net public benefit.
The ACCC considered that a likely effect of the policy was higher prices for core fibre cement products due to the reduction in competition that could result. The ACCC did not accept that James Hardie's decision to invest in research and development was linked to, or reliant upon, implementation of the proposed distribution policy.
More information regarding the notification and a copy of the draft notice are available from the ACCC's website, or by emailing the Adjudication Branch at adjudication@accc.gov.au.