The ACCC has issued a draft determination proposing to grant authorisation to enable the National Honda Dealer Council and a group of Honda dealers to discuss and collectively negotiate with Honda Australia in relation to issues arising from Honda Australia’s termination of existing dealer agreements and their replacement with a new agency model.
The ACCC considers the arrangements are likely to result in some public benefits, including transaction cost savings for all parties, and limited public detriment. Legal protection is sought because such collective negotiations may otherwise breach competition laws, since Honda dealers are in competition with each other in relation to certain products and services.
The ACCC proposes to grant authorisation until 31 July 2026.
The ACCC now invites submissions in relation to this draft determination by 13 November 2020, before making its final decision.
Further information about the ACCC’s draft determination is available on the ACCC public register at: National Honda Dealer Council.