The ACCC has issued its first 'exceptional circumstances' class exemption under new legislative powers.
The class exemption applies retrospectively from 23 June 2026 and operates until 22 December 2026.
This short-term class exemption provides legal protection for competing businesses to respond to harm to Australian consumers or the Australian economy caused by global supply chains disruptions.
The disruptions are those arising from the conflicts in the Middle East that began in February 2026 and the disruptions to international shipping transport through the Strait of Hormuz.
It follows a declaration by the Treasurer which came into force on 23 June 2026. The declaration stated that disruptions to global supply chains arising from these conflicts constitute 'exceptional circumstances' which the Treasurer is satisfied are causing significant harm to the Australian economy or Australian consumers.
The Treasurer's declaration triggered ACCC powers to make the class exemption using a streamlined process.
The ACCC has made this class exemption as it is satisfied that in some cases industry collaboration will help the response to or recovery from the exceptional circumstances identified in the Treasurer's declaration.
Class exemption requirements
How this class exemption operates, including requirements businesses must meet to have legal protection from competition laws to engage in collaborative conduct, is available on the ACCC's public register.
Broadly, these requirements are:
- The ACCC is notified in advance of meetings where competing businesses will discuss coordination. If the meeting was not convened by the Australian Government or a state or territory government, the ACCC must approve the meeting taking place.
- A lawyer with competition law experience approved by the ACCC attends all meetings.
- Outcomes of all meetings are reported to the ACCC.
- All plans agreed at meetings are submitted to the ACCC for approval before being implemented. If the plan is agreed by industry participants independently of any Australian Government or a state or territory government meeting or forum, the plan is not implemented unless it is approved by the ACCC.
Background
Since 26 May 2026 the ACCC has had new powers that allow for faster, streamlined exemptions to Australia's competition laws in response to national emergencies and other exceptional circumstances.
The new powers are triggered by the declaration of a national emergency by the Australian Government under the National Emergency Declaration Act 2020, or when the Treasurer declares exceptional circumstances apply.
This may include, for example, coordinating to ensure continued supply of a critical product or service during a national crisis.
Following the Treasurer's declaration, the ACCC can grant streamlined exemptions for coordinated conduct that relates to the exceptional circumstances specified in the Treasurer's declaration.
Businesses who propose to engage in collaborative activities that fall outside the scope of the class exemption can use the streamlined authorisation process to seek legal protection.
