The Australian Competition and Consumer Commission has allowed Repco Limited to launch the Repco Auto Repair Fleet Solutions Program following a final decision issued today.
"The arrangements allow individual Repco repairers, including those located in different areas, to get together and offer fleet servicing and repair services to customers with fleet vehicles located throughout Australia", ACCC Chairman, Professor Allan Fels, said. "This arrangement will enable more small businesses to enter and compete in the fleet servicing and repair market.
"The ACCC has granted immunity to Repco from legal action under the Trade Practices Act 1974 by allowing it and its licensed repairers to offer servicing and repair services to operators or owners of fleet vehicles on common terms and through a common billing arrangement".
Through the program, Repco will solicit fleet customers and negotiate maximum pricing terms on behalf of Repco Auto Repairers.
Repco sought authorisation for the arrangements because it considered that the arrangements were at risk of breaching the competition provisions of the Act. Authorisation provides immunity from court action arising from such arrangements but can only be granted where the ACCC is satisfied that the public benefit arising from the arrangements outweighs any public detriment.
"The program will provide an additional choice to consumers in the fleet servicing industry and may produce more competitive rates and management fees in the industry. Additionally, the ACCC considers that the centralised billing system will further benefit fleet customers due to the uniform, single payment system and potential decrease in administrative process".
In assessing the matter, the ACCC noted the ability of fleet owners to terminate any agreement under the program and their ability to negotiate better terms with individual Repco repairers where possible. The final decision will be available on the ACCC's website.