The ACCC has issued a determination conditionally authorising 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 granted conditional authorisation until 29 April 2025.
CSA collective bargaining scheme includes an 'active member test' to ensure that businesses that join CSA are doing so for the purpose of genuinely participating in collective bargaining arrangements, rather than for the purpose of accessing confidential supply terms (and using the information outside CSA). In order to limit the scope of how the active member test may be applied, the ACCC imposed a condition that CSA not impose any minimum value or volume requirements on members without the prior approval of the ACCC.
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.
More information about the ACCC’s draft determination and interim authorisation decisions are available on the public registers at: Co-Operative Supermarkets Australia Limited.