The ACCC has granted interim authorisation to the National Honda Dealer Council (NHDC) to enable itself and represented Honda Australia dealers to share information, and to commence negotiations with Honda Australia about the proposed terms of a new agency model proposed to be entered into between Honda Australia and dealers, whereby dealers would deal with consumers as agents of Honda Australia in some respects rather than in their own right (the New Model).
Interim Authorisation provides legal protection to participate in collective bargaining that may otherwise breach competition laws because it involves joint action by competitors. In this instance, Honda dealers may compete with other Honda dealers on some aspects of their products and service offerings and may continue to compete to some extent following the transition to the New Model. Participation in collective bargaining will be voluntary for dealers represented by the NHDC and for Honda.
Interim authorisation will allow the NHDC and represented dealers to commence negotiations while the ACCC assesses the substantive application for authorisation. It does not extend to allowing entry into agreements arising from the collective bargaining to give effect to the transition to the New Model.
The next step in the process is for the ACCC to release a draft determination in October or November which will indicate the ACCC’s views on the public benefits and public detriments likely to result from the proposed information sharing and collective bargaining.
Copies of the application for authorisation as well as details on how to make a submission, and the ACCC’S Statement of Reasons in respect of this interim authorisation decision, are available on our public register at: National Honda Dealer Council.