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ARTICLE · 20 JANUARY 2017

ACCC denies authorisation to joint procurement of SA waste arrangements

Holding Redlich
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The ACCC was not satisfied that the benefit would outweigh the detriment constituted by the lessening of competition.

AustraliaAntitrust/Competition Law
Scott Alden
Scott Alden
Victoria Gordon
Victoria Gordon
Lauren Stables
Lauren Stables
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In November 2015, Council Solutions and five metropolitan Adelaide councils (Adelaide City Council, Charles Sturt, Marion, Tea Tree Gully, and Port Adelaide Enfield) (the Applicants) sought authorisation from the ACCC to jointly procure, negotiate and contract four service streams in South Australia for a period of 17 years. The service streams include waste collection services, receipt and processing of recyclables, receipt and processing of organics and waste disposal services.

In February 2016, the ACCC issued a draft determination granting interim authorisation for the proposed conduct and indicated authorisation would be granted to the Applicants for the 17 year period. In response, the ACCC received over 35 public and anonymous submissions from interested parties. All but two submissions raised concerns about the proposed conduct. The ACCC used this information to assess the benefits and detriments of the proposed conduct to the public.

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