The Australian Competition and Consumer Commission grants for the first time a conditional authorisation to engage in resale price maintenance (Tooltechnic Systems)

Refining its Tool Kit – The ACCC’s decision to authorise RPM in the Tooltechnic case* In December 2014 Australia’s Competition and Consumer Commission (“the ACCC”) granted conditional authorisation to Tooltechnic Systems (Australia) Pty Ltd (“Tooltechnic”) to engage in minimum resale price maintenance (“RPM”) in marketing its premium Festool brand of power tools. [1] RPM is subject to a per se prohibition under Australia’s competition laws, but can be allowed if a firm applies to the ACCC to have the conduct authorised. Although this option has been available since 1995, Tooltechnic was the first firm to successfully apply to the ACCC for authorisation. The ACCC recognised that RPM would eliminate price competition between dealers for Festool products, and thus increase retail prices to some

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Authors

  • RBB Economics (London)
  • RBB Economics (Melbourne)

Quotation

Derek Ridyard, George Siolis, The Australian Competition and Consumer Commission grants for the first time a conditional authorisation to engage in resale price maintenance (Tooltechnic Systems), 5 December 2014, e-Competitions Bulletin December 2014, Art. N° 72660

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