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Fee-free Aussie ATM network seeks immunity from price-fixing complaints

The six members of Australia's FeeSmart ATM sub-network are hoping that the Australian Competition and Consumer Committee will agree that, in their case, price collusion benefits consumers.

June 19, 2014

Sometimes collusion is good for competition. The six members of Australia's FeeSmart ATM sub-network are hoping that the Australian Competition and Consumer Committee will agree and renew its authorization of their fee-free ATM agreement. 

Under Reserve Bank of Australia rules, ATM operators may charge fees for off-us ATM transactions directly to the ATM user, a report by IT Wire said.

This means that, technically, an agreement among banks to charge off-us fees to one another rather than the cardholder could constitute anti-competitive practice.

However, the reserve bank also allows small providers to create sub-networks of ATMs that allow them to expand their ATM footprint and compete with larger institutions on a level playing field.

Dr. Michael Schaper, deputy chair of the ACCC, said that the organization grants authorization when it is satisfied that doing so is in the public's best interests.