ACCC flooded with requests to authorise business ‘co-operation’

ACCC Chair Rod Sims. The watchdog provides statutory protection from court action for conduct that might otherwise raise competition concerns. Picture: Zak Simmonds

September 30 is the date of the financial “cliff” facing Australian business, but it’s also the deadline for over 30 authorisation applications before the “Australian Cartel Cooperation Commission”.

The tongue-in-cheek title is a reference to the rush of co-operation authorisations filed with the Australian Competition and Consumer Commission (ACCC) to deal with COVID-19.

Authorisations are needed when the activity may breach competition laws but is justified, perhaps on a short-term basis on public benefit grounds, for example to deal with the COVID-19 pandemic.

With a couple of notable exceptions the ACCC has waved through the applications but now comes the task of working through the detail.

This month is the interim deadline for most of the applications before final decisions in September.

The ACCC has tended to grant interim authorisation pending final decisions.

There are a slew of obvious medical-related requests seeking clearance for talks with competitors to ensure medical equipment and services are available, including between private and public hospitals.

Others have proved more problematic, like the Australia New Zealand Industrial Gas Association, which wanted to co-ordinate supply to ensure there was enough medical oxygen available.

NSW Health confided there was “limited benefit” from the agreement. Given it is a major user one can only assume this authorisation has a short life span.

The Minerals Council of Australia sought authorisation to ensure supplies arrived on time for its members, which range from BHP down.

Important as these companies are, speaking for a collective $150 billion a year in exports, this one is also a stretch.

Agreements between small shopkeepers to negotiate with big landlords was approved, at least in the interim stages.

With the merger pipeline having shrunk somewhat, the competition team at the ACCC appears to be fully engaged on authorisation work.

Elsewhere of course there is more work on potential cartel cases and this month is also the deadline for the digital platforms code of conduct governing Google and Facebook.