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ARTICLE · 30 APRIL 2020

ACCC gives green light for COVID-19 cooperation

Businesses should seek ACCC authorisation before engaging in any discussions or joint initiatives with competitors.

AustraliaAntitrust/Competition Law

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.

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