12 December 2014

RPM approved by ACCC in power tools case

On 5 December 2014, the Australian Competition and Consumer Commission (ACCC) granted conditional authorisation to Tooltechnic Systems (Aust) Pty Ltd (Tooltechnic) to set minimum retail prices on Festool power tools until 31 December 2018. This is the first application for authorisation for resale price maintenance under the Competition and Consumer Act 2010.The ACCC accepted that there is a market failure caused by the free riding of some Festool retailers and that the likely public benefit resulting from the expected increase in retail services as a result of the RPM arrangement will outweigh the limited detriment resulting from some customers facing a higher retail price for Festool products.RBB Economics provided economic advice to Minter Ellison and Toolltechnic on the application for authorisation. 

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