While it is early days in his tenure, I like some of the comments from new ACCC Chairman Rod Sims.
Sims’ comments last week, for example, as reported in the Australian Financial Review on Tuesday (pg. 5) about unconscionable conduct were interesting. Sims flagged brining more action on behalf of small and medium sized businesses against big businesses which have acted, in the view of the ACCC, unconscionably.
In the newsagency channel given the size and dominance of some of our suppliers and given some behaviour, there may be a better opportunity for ACCC engagement is the ACCC under Sims is true to his words.
The area of concern on my mind at the moment is magazine distribution. While network Services has improved its approach and I do see light at the end of that tunnel (and, no, it does not sound like a train) Gordon and Gotch is less engaged than I can recall in 30 years in this channel. They consistently oversupply with more than half the titles they currently supply being cash flow negative (loss making) in some newsagencies I have seen data for. Despite claims and promises, those in control of Gordon and Gotch appear unwilling or unable to deliver an equitable (for newsagents) supply model.
So, bring it on ACCC. Take a look at the magazine distribution model. Check out your files as there is plenty of data already in these at the ACCC. Resource an inquiry. Talk to publishers of all sizes, newsagents, consumers and the distributors. Make the interviews and discussions public so we can comment.