Skip to content

  • Home
  • COVID-19 Guide
  • COVID-19 AV library
  • Client results
  • Expertise
  • News & Insights
  • People
  • Our DNA
  • Inclusion and Diversity
  • Join us
  • Contact Us
Home / NEWS & INSIGHTS / Blog / COVID-19: Recommendations and considerations / ACCC gives green light for COVID-19 cooperation
COVID-19: Recommendations and considerations 14 April 2020

ACCC gives green light for COVID-19 cooperation


The Australian Competition and Consumer Commission (ACCC) has granted a number of interim authorisations to organisations in particular industries, which allow them to cooperate during the coronavirus pandemic. Ordinarily, competitors cooperating to make decisions is illegal and the antithesis of competition. Authorisations provide statutory permission for organisations to engage in conduct that would ordinarily breach the Competition and Consumer Act 2010 without risking prosecution or private action.  They are granted where the potential public benefits of competitors’ cooperation outweigh concerns about any public detriment.

Usually, the ACCC makes determinations on whether to allow authorisations within six months of receiving a valid application, and undertakes a public consultation process before making the decision.  However, applicants can also request an interim authorisation, which the ACCC will aim to make a determination on within 28 days of the request.  The list of interim authorisations granted as a result of the extenuating circumstances of the pandemic continues to grow, and so far includes those permitting:

  • supermarkets to coordinate to maintain grocery supply;
  • shopping centre owners to coordinate to develop rent relief measures for small to medium tenants;
  • banks to coordinate on providing supplementary relief packages for individuals and businesses;
  • gas and electricity providers to coordinate to ensure a stable energy supply and the integrity of wholesale markets;
  • medicine wholesalers to coordinate to ensure the distribution of essential medicines and pharmaceutical products;
  • airlines to coordinate to develop flight schedules for ten regional flight routes; and
  • private health insurers to coordinate on returning excess profits to members and on extending cover to certain other procedures (such as telehealth).

Practical Implications

In the case of the supermarket interim authorisation, for example, the ACCC has given the green light to Coles, Woolworths, Aldi, Metcash, and any other retailer wishing to participate, to coordinate with each other when liaising with manufacturers, suppliers, and logistics providers in their operations.  The supermarkets’ application was approved within a few days, and is directed at the steady distribution of and equitable access to groceries following unprecedented consumer demand stemming from the pandemic.  It allows the supermarkets to coordinate to introduce measures designed to curb grocery stockpiling and reduce strain on supply chains without risking enforcement action.  The authorisation does not permit supermarkets to agree on product pricing.

Making an Application

If you wish to liaise with your competitors for any reason during the pandemic (or are approached by a competitor to do so), you must be aware that this may still be illegal and even criminal conduct.  You should seriously consider seeking ACCC authorisation before engaging in any discussions or joint initiatives with your competitors.  If your business requires ACCC authorisation to cooperate with competitors during the pandemic in a way that might ordinarily breach the Competition and Consumer Act 2010, you can submit an application for an interim authorisation to the ACCC using the specified form, and pay the application fee.  McCullough Robertson can assist you to prepare an application quickly and advise upon your likelihood of success.

This publication covers legal and technical issues in a general way. It is not designed to express opinions on specific cases. It is intended for information purposes only and should not be regarded as legal advice. Further advice should be obtained before taking action on any issue dealt with in this publication.

About the authors

  • Belinda Breakspear

    Partner
  • Paul McLachlan

    Strategic Adviser

In other news

McR strengthens the Construction and Infrastructure team in Brisbane

McCullough Robertson strengthens its National Construction and Infrastructure team with key Partner hire in Brisbane

27 January 2021News

New Industrial Relations Laws – What it means for you

22 December 2020Insight

Payment Times Reporting Scheme

21 December 2020Insight

Australian Government proposes new broadcaster’s licence and forced investment quotas in Media Reform Green Paper

14 December 2020Insight

VIEW ALL NEWS & INSIGHTS

BRISBANE

Level 11, 66 Eagle Street
Brisbane QLD 4000
GPO Box 1855
Brisbane QLD 4001
Tel +61 7 3233 8888
Fax +61 7 3229 9949

 

GET IN TOUCH

Contact form

We handle your personal information in accordance with our privacy policy.

sydney

Level 32, MLC Centre
19 Martin Place
Sydney NSW 2000
GPO Box 462
Sydney NSW 2001

Tel +61 2 8241 5600
Fax +61 2 8241 5699

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

melbourne

Level 27, 101 Collins Street
Melbourne VIC 3000
GPO Box 2924
Melbourne VIC 3001

Tel +61 3 9067 3100
Fax +61 3 9067 3199

 

GET IN TOUCH

Contact form

We handle your personal information in accordance with our privacy policy.

follow us

CLIENT LOGIN

newcastle

Level 2, 16 Telford Street
Newcastle NSW 2300
PO Box 394
Newcastle NSW 2300

Tel +61 2 4914 6900
Fax +61 2 4914 6999

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

canberra

Level 9, 2 Phillip Law Street
Canberra ACT 2601

Tel +61 2 6243 3699
Fax +61 2 8241 5699

 

GET IN TOUCH

Contact form


We handle your personal information in accordance with our privacy policy.

© 2017 McCullough Robertson. Site map Disclaimer Privacy Policy Credit Reporting Policy

X