The Australian Competition and Consumer Commission has received an application by an EFTPOS Industry Group*, which includes banks, credit unions and building societies, to approve an EFTPOS reform proposal, ACCC Chairman, Professor Allan Fels, said today.
"If approved the proposal would allow the group to collectively reduce current interchange or wholesale fees for EFTPOS transactions to zero.
"Before the ACCC can grant authorisation** to the EFTPOS reform proposal, the EFTPOS Industry Group must demonstrate that the reforms are likely to result in a public benefit that will outweigh any anti-competitive detriment that may result from the reform.
"The ACCC is required to test the EFTPOS Industry Group's public benefit claims through an open public consultation process. This process includes seeking submissions from interested parties, and requires the ACCC to issue a draft decision for public comment before making a final decision".
The ACCC will consider submissions from interested parties in relation to the proposed EFTPOS reform, these submissions should be address to: The General Manager, Adjudication Branch, ACCC, PO Box 1199, Dickson, ACT 2601 or adjudication@accc.gov.au by 21 March.
Copies of the parties' application for authorisation and supporting submission are available from the ACCC’s website or by contacting the ACCC public register officer on (02) 6243 1330.
*The parties seeking authorisation are: Australia and New Zealand Banking Group, Australian Settlements Ltd, Bank of Queensland, Bank of Western Australia Ltd, Bendigo Bank, Cashcard Australia Ltd, Commonwealth Bank of Australia, Credit Union Services Corporation (Australia) Ltd, National Australia Bank, St. George Bank Ltd, Suncorp Metway Limited, and Westpac Banking Corporation.
**The Trade Practices Act 1974 prohibits competitors agreeing to work together in a way that reduces competition between them. Authorisation provides immunity from court action arising from such agreements but can only be granted where the ACCC is satisfied that the public benefit arising from the conduct outweighs any public detriment.