The ACCC has decided not to object to a collective bargaining notification lodged by TSG Franchise Management on behalf of itself and current and future franchisees.
Under the notification, TSG and its franchisees proposed to collectively negotiate with British American Tobacco Australia regarding the terms of a supply agreement. The notification provides immunity from competition laws, as joint negotiation by a group of competitors risks breaching these.
The ACCC considers the proposed conduct is likely to result in public benefits in the form of information sharing efficiencies, transaction cost savings and enabling the growers to have better input into contracts. There are likely to be minimal, if any, public detriments.
The notification was lodged on 15 November 2019 and the ACCC has decided to allow it to remain in force until 14 November 2022, unless it is withdrawn or revoked.
Copies of the notification and our Statement of Reasons are available on our public registers at: TSG Franchise Management Pty Ltd.