The Australian Competition and Consumer Commission will not revoke two third line forcing exclusive dealing arrangements notified by the Optus group of companies.
"The first notification deals with Optus Vision's 'bundling' of pay television and local telephony services," ACCC Chairman, Professor Allan Fels, said today.
"Optus Vision notified the ACCC that it intended to provide free installation for pay television services (currently equivalent to the value of $29.95) on condition that consumers acquire local telephony services from Optus Networks.
"Optus Vision proposes to make this offer available until 1 July 2000.
"The other proposal, lodged by Optus Mobile and Optus Networks, related to mobile/long distance telephony services bundling.
"These notifications will allow Optus Mobile to offer free trials or discounts on AMPS and digital mobile services or mobile value added services (for example, secure fax and sure page) on condition that consumers also acquire long distance or long distance value added services (for example, calling cards and dedicated international fax line services) from Optus Networks (and vice versa). The free trials will be available for up to two months while the discounts will be available in contracts for up to 12 months duration.
"The conduct also involves discounts by Optus Mobile on AMPS or digital mobile phone handsets on condition that consumers also acquire long distance or long distance value added services from Optus Networks (and vice versa). Discounts in relation to mobile handsets are available in contracts for up to 18 months duration.
"Again the conduct is limited to customer contracts entered into before 1 July 2000.
"The ACCC considered the conduct would not be detrimental to market information available to consumers on the individual products, or on consumer choice. Consumers will not be forced to take two products and will be free to buy the services from either Optus or its competitors.
"Those consumers who want to take 'bundled' services from Optus will benefit as they will get the services at a lower cost than if they were to get the services separately.
"In the pay TV/local call telephony notification, as Optus does not have a substantial market share in the relevant markets and the discount is limited to free installation for pay television services (and also limited to those areas serviced by Optus Vision's cable network), the conduct was not found to be detrimental to competition.
"In relation to the notifications relating to the 'bundling' of mobile/long distance telephony services, again the ACCC found that Optus does not have substantial market shares in the relevant markets and any advantage it might gain as a result of the conduct would not be beyond a competitive response from other providers of mobile and long distance telephony services."
Professor Fels said the ACCC can move to remove the immunity enjoyed as a result of the notification at any time if it is satisfied the likely benefit to the public does not outweigh the likely detriment.
"The ACCC will monitor the practical effects of the conduct in both arrangements."
"The first notification deals with Optus Vision's 'bundling' of pay television and local telephony services," ACCC Chairman, Professor Allan Fels, said today.
"Optus Vision notified the ACCC that it intended to provide free installation for pay television services (currently equivalent to the value of $29.95) on condition that consumers acquire local telephony services from Optus Networks.
"Optus Vision proposes to make this offer available until 1 July 2000.
"The other proposal, lodged by Optus Mobile and Optus Networks, related to mobile/long distance telephony services bundling.
"These notifications will allow Optus Mobile to offer free trials or discounts on AMPS and digital mobile services or mobile value added services (for example, secure fax and sure page) on condition that consumers also acquire long distance or long distance value added services (for example, calling cards and dedicated international fax line services) from Optus Networks (and vice versa). The free trials will be available for up to two months while the discounts will be available in contracts for up to 12 months duration.
"The conduct also involves discounts by Optus Mobile on AMPS or digital mobile phone handsets on condition that consumers also acquire long distance or long distance value added services from Optus Networks (and vice versa). Discounts in relation to mobile handsets are available in contracts for up to 18 months duration.
"Again the conduct is limited to customer contracts entered into before 1 July 2000.
"The ACCC considered the conduct would not be detrimental to market information available to consumers on the individual products, or on consumer choice. Consumers will not be forced to take two products and will be free to buy the services from either Optus or its competitors.
"Those consumers who want to take 'bundled' services from Optus will benefit as they will get the services at a lower cost than if they were to get the services separately.
"In the pay TV/local call telephony notification, as Optus does not have a substantial market share in the relevant markets and the discount is limited to free installation for pay television services (and also limited to those areas serviced by Optus Vision's cable network), the conduct was not found to be detrimental to competition.
"In relation to the notifications relating to the 'bundling' of mobile/long distance telephony services, again the ACCC found that Optus does not have substantial market shares in the relevant markets and any advantage it might gain as a result of the conduct would not be beyond a competitive response from other providers of mobile and long distance telephony services."
Professor Fels said the ACCC can move to remove the immunity enjoyed as a result of the notification at any time if it is satisfied the likely benefit to the public does not outweigh the likely detriment.
"The ACCC will monitor the practical effects of the conduct in both arrangements."