The ACCC has granted interim authorisation to Co-Operative Supermarkets Australia Limited, on behalf of itself and its members (together, the Applicants), to enable the Applicants to commence negotiations with suppliers and allow information sharing between 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 interim authorisation CSA and its members will be able 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).
Interim authorisation will allow the Applicants to commence negotiations while the ACCC assesses the substantive application for authorisation. It does not extend to allowing the Applicants to finalise and enter into agreements with suppliers.
The Applicants have also sought authorisation to apply an ‘active member test’ that would require members to actively trade in goods and services offered through CSA’s system during each rolling two month period. Interim authorisation does not extend to CSA imposing this requirement.
The next step in the process is for the ACCC to release a draft determination which will indicate the ACCC’s preliminary views on the merits of the application. The ACCC will consider the public benefits and public detriments likely to result from the imposition of the active member test further before making a draft decision.
More information about the ACCC’s interim authorisation decision is available on the public registers at: Co-Operative Supermarkets Australia Limited.