The ACCC has issued a determination granting conditional authorisation to enable 7-Eleven Stores Pty Limited (7-Eleven) to approach certain stores in its network and enter into arrangements which will provide for temporary closure or reduced trading hours. These stores, which may include stores operated by franchisees and stores operated by 7-Eleven (or through its sister entity, Convenience Holdings Pty Limited), have experienced substantially reduced demand during the COVID-19 pandemic.
The ACCC may grant authorisation which provides businesses with legal protection for arrangements that may otherwise risk breaching competition law but are not harmful to competition and/or are likely to result in overall public benefits. The ACCC considers that maintaining competition in the long term will be critical to benefit both consumers and the economy. By providing a temporary mechanism to lessen the economic impact of the pandemic on franchisees, the arrangements may assist in the return to competitive conditions. The ACCC considers this to be of benefit to the public.
The ACCC has decided to grant conditional authorisation until 31 March 2021. The condition will allow the ACCC to monitor the authorised conduct. The authorisation granted by the ACCC is for the sole purpose of allowing the 7-Eleven network to respond to the pandemic.
If no application for review of the determination is made to the Australian Competition Tribunal, the authorisation will come into force on 20 August 2020.
Further information about the ACCC’s decision is available on the ACCC’s public register at: 7-Eleven Stores Pty Limited.