The ACCC has accepted a court-enforceable undertaking from N.A.S.R. Incorporated, trading as Speedway Australia, after the ACCC raised competition concerns relating to speedway racing in Victoria.
The ACCC investigated reports that Speedway Australia’s affiliated speedway track operators were being restricted in their choice of the speedway racing classes or divisions they could program to race at their tracks, due to an agreement between Speedway Australia and the Sprintcar Control Council of Australia (SCCA).
It was alleged that, since 2018, Speedway Australia restricted the VSC Sprintcar class from competing at Speedway Australia affiliated tracks in Victoria, limiting the number of tracks where that class of vehicles could race. This included removing the VSC Sprintcar class from the list of classes covered under its public liability insurance policy and through the terms of the policy, limiting the classes which could race at affiliated tracks throughout the racing season.
“The reports we received suggested that Speedway Australia’s agreement with SCCA, and its conduct giving effect to that agreement, limited the options available for tracks to host events with racing divisions and classes of their choosing, which would also reduce the variety of racing that could be offered to spectators,” ACCC Chair Rod Sims said.
“The ACCC was concerned that these actions may have had the purpose, effect or likely effect of substantially lessening competition.”
Speedway Australia has now undertaken not to prohibit its affiliated tracks from hosting racing events that include divisions or classes other than those that are approved by Speedway Australia. They have also undertaken not to remove or restrict access to the rights and benefits of being affiliated with Speedway Australia, such as access to public liability insurance arranged by Speedway Australia, if tracks host races with divisions or classes not approved by Speedway Australia.
However, if tracks hold an event that includes races for divisions or classes not approved by Speedway Australia, they will need to secure their own public liability insurance for that event.
“Speedway tracks in Victoria will now have greater choice of which classes and divisions of sprintcar they can host,” Mr Sims said.
“This enforceable undertaking given by Speedway Australia should enable speedway spectators to watch some forms of sprintcar racing at their local track they weren’t previously able to watch, and to benefit from the variety and innovation in racing offered by competing sprintcar organisers.”
Speedway Australia has also undertaken to amend the terms of its public liability insurance and inform interested organisations of the amended insurance policy, and to attend training focusing on the competition provisions of the Competition and Consumer Act.
Speedway Australia has acknowledged the ACCC’s concerns and has cooperated with the ACCC during its investigation.
A copy of the undertaking is available on the public register at: N.A.S.R. Incorporated, trading as Speedway Australia
Background
Speedway racing is a form of motorsport featuring different divisions and classes of vehicles based on technical and safety specifications.
Speedway Australia is a not-for-profit incorporated association and is the national governing body for speedway racing in Australia.
The Sprintcar Control Council of Australia (SCCA) is a not-for-profit incorporated association which determines the technical and safety specifications for the ‘SCCA Sprintcar’ and ‘SCCA 360 Sprintcar’ classes nationally.
The Victorian Speedway Council (VSC) is a not-for-profit incorporated association which licenses, registers and governs certain classes of speedway racing in Victoria including the ‘VSC Sprintcar’ class. The VSC Sprintcar, which is administrated by the Victorian Sprintcar Association, is the only sprintcar class operating in Victoria which is not under the control of the SCCA. It is generally cheaper for tracks to host VSC sprintcars than alternative sprintcar classes which are affiliated with the SCCA.