The Australian Competition and Consumer Commission has authorised Liquor Stax Australia to collectively bargain with a range of wholesale suppliers.
Liquor Stax sought authorisation, on behalf of a group of around 200 small businesses comprising liquor merchants and hotels, to collectively bargain with around 60 wholesale suppliers of inputs such as alcohol, cigarettes, poker machines and confectionery as well as services such as advertising, insurance and communications.
"The ACCC considers that the collective bargaining arrangements are likely to result in public benefits by providing Liquor Stax members with greater input into the terms and conditions of supply contracts," ACCC chairman Graeme Samuel said today. "Additionally, suppliers and members are both likely to experience transaction cost savings as a result of reducing the number of parties to negotiations."
Participation in the collective negotiations is voluntary for all parties and does not impose any restrictions on a member’s choice of suppliers.
The ACCC has granted authorisation for five years.
The ACCC may authorise this type of arrangement when it is satisfied that the public benefit from the conduct outweighs any public detriment. Authorisation provides immunity from court action for conduct that might otherwise raise concerns under the competition provisions of the Trade Practices Act 1974.
The ACCC's determination will be available from the ACCC website, http://www.accc.gov.au/content/index.phtml/itemId/935905