The Australian Competition and Consumer Commission (ACCC) has officially denied an authorization request from Screen Producers Australia (SPA) that would have allowed local independent producers to collectively negotiate with television broadcasters and major streaming platforms. The decision prevents SPA from drafting collective “model terms of trade” and enforcing those shared parameters across its membership base.
While the antitrust watchdog acknowledged that collective bargaining could theoretically reduce individual transaction costs and give smaller producers greater leverage in the negotiation room, it ultimately concluded that the downsides outweighed the benefits. The ACCC expressed skepticism over the net financial savings of the proposal, noting that the upfront costs required to establish and maintain these model terms would likely be significant enough to negate the administrative efficiencies. Furthermore, the regulator remained unpersuaded by SPA’s assertions that collective bargaining would directly foster greater cultural and content diversity on screen.
Central to the ACCC’s refusal was the fear that standardized model terms would inadvertently stifle the flexibility of the local entertainment industry. The regulator expressed concern that these guidelines would rapidly morph into a rigid industry-wide benchmark. Instead of elevating everyone, a standardized framework risks narrowing negotiation outcomes and limiting the ability of creators and platforms to strike tailored, project-specific deals that reflect the unique needs of individual productions.
In its final determination, the commission stressed that while collective bargaining can generate real industry efficiencies under the right circumstances, it is not a one-size-fits-all solution. For an exemption to competition law to be granted, the composition of the bargaining group, the nature of the product, and the process itself must clearly benefit the public. In this instance, the ACCC ruled that the potential public detriment of a restricted market outbalanced the specialized benefits claimed by the screen producers.
