Authorisations

ACCC won't allow tobacco companies to act together

The Australian Competition and Consumer Commission is denying authorisation to British American Tobacco, Imperial Tobacco, and Philip Morris to jointly cease supplying retailers or wholesalers they consider to be supplying illicit tobacco.

Between them, these three companies supply well over 90 per cent of the market for tobacco products in Australia, including all of the major brands.

“This kind of interaction between all of the major competitors raises competition concerns, especially in such a highly concentrated market,” ACCC Chairman Rod Sims said.

ACCC allows SA businesses to jointly purchase electricity

The Australian Competition and Consumer Commission has authorised the South Australian Chamber of Mines and Energy, along with 27 other South Australian businesses, to establish a joint electricity purchasing group for 11 years.

Authorisation will allow the joint buying group to attempt to secure reliable electricity supply arrangements for its members at competitive prices. Together, the group’s total load of 269 MW accounts for around 16 per cent of electricity demand in South Australia and less than one per cent of the National Electricity Market.

ACCC approves cane growers collective bargaining

The Australian Competition and Consumer Commission has authorised members of the Canegrowers Organisation to collectively bargain cane supply and related contracts with mill owners and sugar marketers for ten years.

“This authorisation can provide an opportunity for growers, millers and sugar marketers to negotiate mutually beneficial contracts without breaching competition laws. It is up to the parties to decide the extent to which they take up this opportunity,” ACCC Commissioner Mick Keogh said.

ACCC proposes to grant authorisation to SA businesses for the joint purchase of electricity

The Australian Competition and Consumer Commission has issued a draft determination proposing to allow the South Australian Chamber of Mines and Energy, along with 24 other South Australian businesses, to establish a joint electricity purchasing group. The ACCC proposes to grant authorisation for 11 years.

The ACCC has also granted interim authorisation to allow the parties to commence a joint tender for the supply of electricity immediately. 

ACCC denies authorisation for banks to collectively bargain with Apple and boycott Apple Pay

The Australian Competition and Consumer Commission has issued a determination denying authorisation to the Commonwealth Bank of Australia, Westpac Banking Corporation, National Australia Bank, and Bendigo and Adelaide Bank (the banks) to collectively bargain with Apple and collectively boycott Apple Pay.  

“The ACCC is not satisfied, on balance, that the likely benefits from the proposed conduct outweigh the likely detriments. We are concerned that the proposed conduct is likely to reduce or distort competition in a number of markets,” ACCC Chairman Rod Sims said.

ACCC denies authorisation for insurance companies to jointly set a cap on sales commissions

The Australian Competition and Consumer Commission has issued a final determination denying authorisation to 16 insurance companies to agree to a cap of 20 per cent on commissions paid to car dealers who sell their add-on insurance products.

“The ACCC is denying authorisation because we believe this proposal is unlikely to change sales incentives or the quality of products, and consumers will still be sold products without being given adequate information or opportunity to make a considered decision,” ACCC Chairman Rod Sims said.

ACCC welcomes reporting of payments to individual healthcare professionals

The Australian Competition and Consumer Commission welcomes transparency reports published by Medicines Australia member companies in accordance with the Code of Conduct authorised by the ACCC in April 2015.

The Code sets the standards for the marketing and promotion of prescription pharmaceutical products in Australia by member companies. The reporting regime requires identification of ‘transfers of value’, such as speaking fees, advisory board fees, and sponsorships to attend conferences, made by member companies to individual healthcare professionals since October 2015.