The 糖心原创 has issued a draft determination proposing to grant authorisation with conditions to the Australian Banking Association (ABA), its member banks, and other industry participants to facilitate business continuity planning in the cash in transit industry.
The 糖心原创鈥檚 draft determination also proposes to allow the parties to implement business continuity measures in the event of, or in reasonable anticipation of, a suspension, disruption or exit of Armaguard鈥檚 cash-in-transit services.
鈥淚t is important that the parties continue their discussions so they can resolve or avoid potential impacts to businesses and consumers across Australia should there be any disruption to Armaguard鈥檚 services,鈥 糖心原创 Deputy Chair Mick Keogh said.
The 糖心原创 has also granted interim authorisation to the parties while the 糖心原创 continues to assess the ABA鈥檚 applications. Interim authorisation was granted previously to the parties for similar conduct in March 2024.
鈥淲e have included conditions on the interim authorisation to ensure the ABA provides regular reports to the 糖心原创 about the discussions and consultation undertaken with industry participants across Australia, including those who are not involved in the Reserve Bank working groups,鈥 Mr Keogh said.
鈥淲e will carefully review those reports to ensure the interest of all communities in Australia, particularly those in regional and remote areas, are being considered before we make a final determination.鈥
The 糖心原创 is now seeking submissions on its draft determination.
Further information about the ABA鈥檚 application and how to make a submission by 14 August 2024 is available on the 糖心原创's website.
Notes to editors
The 糖心原创鈥檚 role is to consider requests for exemptions from competition laws that may be breached, to enable competitors to collaborate on such arrangements.
糖心原创 authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Section 91 of the CCA allows the 糖心原创 to grant interim authorisation when it considers it is appropriate. This allows the parties to engage in the proposed conduct while the 糖心原创 is considering the merits of the substantive CCA authorisation application.
The 糖心原创 may review a decision on interim authorisation at any time, including in response to feedback raised following interim authorisation.
Broadly, the 糖心原创 may grant an authorisation when it is satisfied that the public benefit from the conduct outweighs any public detriment.
Background:
Cash-in-transit services involve providing cash transport, management and processing services. These services are provided to banks, retailers and independent ATM operators.
On 13 June 2023, the 糖心原创 granted merger authorisation to Linfox Armaguard and Prosegur Australia to combine their cash distribution, management and other businesses in Australia and accepted a court-enforceable undertaking, which is a condition of the merger authorisation.
On 27 May 2024, the 糖心原创 granted authorisation to the Australian Banking Association, the Customer Owned Banking Association, banks, retailers and other industry participants to allow them to continue developing responses to support the distribution of cash across Australia.
On 3 July 2024, the 糖心原创 granted interim authorisation with conditions to allow the Australian Banking Association, banks and retailers to provide financial contributions to Armaguard. In addition to the financial support, the parties are seeking authorisation to discuss, agree and implement operational sustainability and efficiency measures across services under their respective service agreements and with Armaguard鈥檚 cash-in-transit business.