Enta Australasia
As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd. Click here to view the VIVATICKET Pty Ltd listing. 19th July 2018 - ENTA…
read moreNew Zealand's Commerce Commission has decided that evidence does not support Anytime NZ’s argument that in the circumstances of this particular case price coordination between franchisees is reasonably necessary for it to provide a strong network of gyms in good locations. It also does not suggest that controlling pricing is reasonably necessary in order to maintain the quality of the network in order to compete with other gym chains
As such, The Commerce Commission has declined to give clearance to Anytime NZ Limited (Anytime NZ) to enter into proposed agreements with its franchisees that would have contained or may have contained cartel provisions. The proposed agreements would have allowed Anytime NZ to impose lower and upper limits on Anytime Fitness franchisees’ membership pricing.
Anytime NZ is the New Zealand master franchisee for the global gym network known as Anytime Fitness. Anytime NZ is also the owner and operator of four New Zealand Anytime Fitness clubs.
The Commission advised that it can give collaborative activity clearance to a proposed agreement containing a cartel provision if it is satisfied that:
Anytime NZ submitted that the cartel provisions contained in the proposed agreements were reasonably necessary to:
Commerce Commission Chair Anna Rawlings says that, applying the statutory test to the evidence before it, the Commission is not satisfied that every cartel provision contained in the proposed agreements is reasonably necessary for the purpose of the collaborative activity.
Rawlings added “Anytime Fitness has also not provided sufficient evidence to satisfy us that entering into the proposed agreements would actually lead to the desired quality improvements to Anytime Fitness gyms and Anytime Fitness gyms meeting the desired quality standards. In any event, we consider that it has other, less restrictive, means of ensuring that its gyms meet its quality requirements.
“The lack of such pricing controls up to this point in time also does not appear to have impacted Anytime Fitness’s ability to compete with rival gym chains.”
In relation to the allocation of membership fees, the issues Anytime NZ identified were not found to be widespread across the franchise network. Rather, the evidence suggests that they are confined to particular areas of Auckland and Christchurch.
“The Commission is therefore not satisfied that every cartel provision contained in the proposed agreements is reasonably necessary for the purpose of the collaborative activity, and must decline to grant clearance,” says Rawlings.
“This decision turns on the particular factual circumstances of the Anytime Fitness gym network and its application for clearance. It does not mean that in other situations, including for other franchise networks, a cartel provision(s) that limits pricing freedoms may not be reasonably necessary for the purpose of the collaborative activity. Each application is assessed on its own facts and circumstances.”
A public version of the written reasons for the decision will be available shortly on the Commission’s case register.
Background
The Anytime Fitness franchisees operate under a policy whereby a member of any Anytime Fitness gym can use their key-card to access the facilities and services of any other Anytime Fitness gym (at no extra cost).
Under this reciprocity policy, a member’s membership can automatically transfer from their home gym to a new gym if they access that new gym above a percentage usage threshold over a 60-day period.
A cartel is where two or more businesses agree not to compete with each other. This conduct can take many forms, including price fixing, sharing markets, rigging bids or restricting output of goods and services.
A person that is involved in a collaborative activity can apply for clearance to enter into an agreement that contains one or more cartel provisions. This is a voluntary regime; there is no statutory requirement to seek clearance. Where the Commerce Commission clears an agreement, parties to the agreement will not contravene the cartel prohibition or the prohibition on agreements that substantially lessen competition. In essence, a clearance provides certainty that the agreement is lawful under the Commerce Act.
To be engaged in a collaborative activity, two or more parties must:
Further information explaining how the Commission assesses a collaborative activity clearance application is available at
comcom.govt.nz/business/avoiding-anti-competitive-behaviour/what-is-a-cartel
5th March 2020 - Viagogo pledges to submit to New Zealand law ahead of Commerce Commission action
4th October 2019 - Court decision allows New Zealand Commerce Commission to continue Viagogo legal action
1st July 2019 - Viagogo claims desire to meet with New Zealand’s Commerce Commission
19th February 2019 - New Zealand High Court Judge rejects Commerce Commission injunction against Viagogo
6th February 2019 - Commerce Commission describes Viagogo as a ‘marketplace for scalpers and fraudsters’ in Auckland High Court
5th February 2019 - Commerce Commission interim injunction against Viagogo set for New Zealand High Court hearing
15th August 2018 - New Zealand Commerce Commission begins court action against Viagogo
17th March 2018 - Commerce Commission issues warning over buying event tickets through Viagogo
22nd August 2017 - New Zealand gyms to change contract terms after Commerce Commission review
25th May 2022 - Anytime Fitness to open three new Hong Kong locations as it aims to expand to 100 gyms in the city
7th May 2021 - 250 Australian Anytime Fitness clubs to join in events to raise funds for suicide prevention charity R U OK?
28th January 2021 - Revamped Anytime Fitness Forbes reopens with updated equipment
27th May 2020 - Anytime Fitness Asia acquired by Inspire Brands Asia
4th September 2019 - Anytime Fitness named a top global franchise 12th consecutive year
31st July 2019 - Anytime Fitness recognised as ‘top global’ franchise for 12th consecutive year
6th May 2019 - Anytime Fitness opens 100th club in The Philippines
Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?
As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.
The Complete Guide to Leisure Industry Products & Services.
As of the 1st July 2018, Enta Australasia Pty Ltd/Best Union has been rebranded as VIVATICKET Pty Ltd. Click here to view the VIVATICKET Pty Ltd listing. 19th July 2018 - ENTA…
read morePrincipal Consultant Simon Weatherill has spent the last 20 years developing the world renowned Melbourne Sports Hub, as former Chief Executive Officer of the State Sports Centres Trust…
read morerevolutioniseSPORT is the emerging market leader in online club management in Australia. Whether it is memberships, registrations, events, online sales or governance tools - revolutioniseSPORT is the…
read moreTPEC Pool Enclosures provide a large range of premium commercial and residential retractable swimming pool, spa and terrace enclosures throughout Australia, servicing residential, local government…
read moreBioGuard is Australia and New Zealand’s most trusted supplier of premium, innovative and affordable commercial water treatment systems and chemicals. BioGuard offers a comprehensive range of…
read moreSummit Fitness Equipment is now part of NovoFit - see www.ausleisure.com.au/suppliers/novofit/
read moreTJS Services is a leading national facility services provider. We deliver quality cleaning, maintenance, construction and facility management services to over 1,500 sites Australia wide. Our…
read moreWhether your goal is increasing your centre's revenues or creating an engaging environment, why not add play to your project? If you're looking for stylish aquatic play features, kid-tested…
read moreGet your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!