The ACCC has released a draft guide on sustainability collaborations between businesses. It explains the competition law risks that may arise and how the commission may be able help even if there are potential competition concerns.
ACCC acting chair, Mick Keogh, companies working together for better environmental outcomes will occur as the country moves to a more sustainable economy.
“When businesses work together, they sometimes risk breaching competition law, but legal protection via an ACCC authorisation may be available so that they can pursue their goals without that risk,” Keogh said.
ACCC authorisation provides a legal exemption from the competition provisions of the Competition and Consumer Act (CCA). Once authorisation is granted, businesses can implement their collaboration without risk of the ACCC, or third parties, taking legal action against them for a breach of the competition provisions in the CCA.
“Broadly, the ACCC may grant an authorisation when it is satisfied that the likely public benefit resulting from the proposed conduct outweighs any likely public detriment, such as a lessening of competition,” he said.
Public benefits include reduced greenhouse gas emissions, benefits for biodiversity and water systems or waste reduction.
Keogh said the ACCC had a “clear legal mandate” to take sustainability benefits into account when looking at how to promote competition and the interests of consumers.
“Our intention in developing this guide is to make it clear competition law should not be seen as an immovable obstacle for collaboration on sustainability that can have a public benefit.
“We have already authorised a wide range of agreements that have led to sustainability-related public benefits, such as industry stewardship schemes, joint buying of renewable energy, and collaboration to manage disruptions to recycling systems,” Keogh said.
“We would like to hear if our draft guide improves businesses’ understanding of the potential competition law risks when collaborating to achieve environmental benefits, and if it provides information about the necessary steps to address those concerns.”
https://www.accc.gov.au/system/files/Sustainability-collaborations-and-Australian-competition-law-draft-for-consultation-July-2024.pdf
The ACCC is welcoming feedback on the draft Sustainability collaborations and Australian competition law: A guide for business report until 26 July.
