ACCC to permit small businesses to collectively bargain without prior ACCC approval

The Australian Competition and Consumer Commission (ACCC) announced late last year that it would be introducing the first class exemption for collective bargaining in early 2021, permitting small businesses, franchisees and fuel retailers to negotiate together with their suppliers, processors, franchisor or fuel wholesaler without requiring approval to do so from the ACCC.

Under the current legislative regime collective bargaining may be unlawful unless the businesses first seek and are given, an exemption from the ACCC. Collective bargaining refers to the practice where a business gets together with its competitors to negotiate with a common customer or supplier over the terms of their business relationship (for example, conditions or prices). This conduct is generally prohibited and is a breach of the competition laws.