The ACCC has issued a draft determination proposing to authorise Co-Operative Supermarkets Australia Limited (CSA) to represent its members in collective negotiations with a range of suppliers of goods and services to the Australian grocery industry and allow information sharing between CSA and its members regarding terms of supply to support these negotiations. CSA is an incorporated co-operative whose current members own and operate 121 independent supermarkets across the eastern seaboard of Australia. Under the proposed conduct, CSA and its members propose to negotiate with suppliers about the supply of goods or services that are either consumed by CSA members (for example, electricity or insurance) or offered for sale through the members business (groceries).
The ACCC has also revoked the interim authorisation that it granted on 19 December 2019 (which permitted information sharing and negotiations with suppliers) and issued an expanded interim authorisation that would also allow CSA to enter into contracts with suppliers, conditional upon the final authorisation being granted.
Authorisation provides businesses with legal protection for arrangements that may otherwise risk breaching the law but are not harmful to competition and/or are likely to result in overall public benefits.
The ACCC invites comments on its draft determination by 27 March 2020.
More information about the ACCC’s draft determination and interim authorisation decisions are available on the public registers at: Co-Operative Supermarkets Australia Limited.