Competition Law News
4 February 2012 - Delay for Foxtel Takeover
Austar is seeking approval to delay the shareholder meeting on its proposed acquisition by Foxtel to allow more time for the ACCC to finish its informal review of the proposal. See, eg, Sally Jackson, Austar legal bid to stall Foxtel vote, (The Australian, 4 February 2012). View merger register.
3 February 2012 - ACCC: Cartel conduct - how it affects you and your business
The ACCC has released a leaflet, "Cartel conduct - how it affects you and your business"
2 February 2012 - Supermarket wars
Last year it was milk wars (prompting this Senate Inquiry). Now it's fresh fruit price wars and yet again there are claims that too much price competition is anti-competitive and there are calls for competition policy review (please no!) - see, eg, Richard Willingham and Saffron Howden, MPs concern over supermarket wars, (SMH, February 1, 2012)
In addition, Nick Xenephon wants a federal farming commissioner, apparently influenced by the recent - controversial - decision by the SA to appoint his frequent adviser, Frank Zumbo, the part-time Deputy Small Business Commissioner; see eg Sarah Martin, 'Liberals question adviser's plum job' (The Australian, 1 Feb 2012)). Watch this space!
1 February 2012 - Turnbull calls for ACCC oversight for NBN Co
Malcolm Turnbull has again made clear his views on the need for ACCC oversight on NBN Co - see press release.
31 January 2012 - ACCC takes Eternal Beauty Products to Court alleging RPM
The ACCC has instituted proceedings against Eternal Beauty Products Pty Ltd and its director, alleging they engaged in resale price maintenance "by inducing or attempting to induce two retailers not to sell products online at prices less than those specified by Eternal Beauty." View press release.
25 January 2012 - ACCC grants interim approval to Virgin and Skywest's corporate alliance
The ACCC has granted interim authorisation for a proposed corporate alliance between Virgin and Skywest, which would including bundling of 'air passenger transport services to corporate customers seeking an integrated suite of charter, domestic and international services.' View press release. View authorisation register.
25 January 2012 - ACCC authorises collective bargaining for film and television writers
The ACCC has authorised the Australian Writers' Guild (AWG) to collectively negotiate model terms and conditions of engagement with the Screen Producers Association of Australia (SPAA). View press release. View authorisation register.
25 January 2012 - ACCC grants interim authorisation for continued use of high volume clearance system
The ACCC today 'granted the Australian Payments Clearing Association (APCA) interim authorisation to continue operating certain provisions of its High Value Clearing System (HVCS) Regulations and Procedures.' View press release. View authorisation register.
24 January 2012 - ACCC will not oppose Cabcharge's proposed acquisition of Yellow Cabs in Adelaide
The ACCC's informal merger register notes that the "ACCC considered that as Cabcharge, including its subsidiary taxi networks, did not operate any taxi network services in metropolitan Adelaide, the proposed acquisition would result in a direct transfer of market share of affiliated taxis within the Adelaide metropolitan area" and that therefore "the proposed acquisition would be unlikely to result in a substantial lessening of competition in the markets for the supply of taxi services, taxi network services and booking and dispatch services to taxis in the Adelaide metropolitan area."
In relation to national markets for "provision of taxi-specific non-cash payment instruments, non-cash payment processing services for taxis and the supply of taxi equipment to the taxi industry, the ACCC considered that the proposed acquisition was unlikely to substantially raise barriers to entry and therefore was unlikely to substantially lessen competition in these markets. Within the context of the Adelaide metropolitan area, the ACCC considered that there would remain two independent taxi networks, with a substantial share of affiliated taxis, that could be approached by new entrants." View merger register.
John Durie has a related item in the Australian ('Sims in Drivers Seat on Taxi Ruling', The Australian, 26 January 2012) - he discusses the different path being taken by Sims compared with Samuel and also briefly discussses the recent changes to the Act and the issue of creeping acquisitions - worth a quick read if you can get past the Australian's paywall.
21 January 2012 - Backlash on ACCC merger stance
Several recent news items have discussed the ACCC's approach to mergers in light of the Metcash decision. See, for example, Sid Maher, 'Judge joins backlash against competition watchdog' (The Australian, 10 January 2012). A number of items quote the thoughts of former federal court judge, the Hon Peter Heerey QC, referring to an article published him in last month's ABLR. Stephen Corones also has an item in the last ABLR discussing this case and the editors have promised discussion of the Metcash case in the February issue of the ABLR.
16 January 2012 - AFR: 'ACCC vows to get real on mergers'
The Australian Financial Review (pp 1 and 4) has an article by Patrick Durkin discussing Rod Sims' plan for a more 'pragmatic approach to how it assesses mergers'. Sims states that the ACCC will 'not be taking on theoretical points' but will be making 'proper, commercial assessments'. The item discusses the Metcash deal, the Foxtel/Austar deal, NBN and some other ACCC priorities. Patrick Durkin has another item on page 4 regarding the uncertainty surrounding the legal test for mergers. It includes comments from Peter Heerey QC and Dave Podder.