GW petioning Australian Competition Watchdog to ban online stores

[ÆON]

GW is attempting to ban its independent stockists from offering bits, painting services or online stores similar to what was done in the US.



Unlike the US, Australia has a fairly powerful Consumer watchdog that polices anti competitive behaviour, and so GW has petitioned to have an exception made in their favor.



Below are links to some of the correspondence to and from the ACCC from GW;



[url]http://registers.accc.gov.au/content/index.phtml/itemId/1178319/fromItemId/776499[/url]



These are the new proposed terms (Starts at the bottom of page 2);



[url]http://registers.accc.gov.au/content/trimFile.phtml?trimFileTitle=D14+59305.pdf&trimFil eFromVersionId=1180413&trimFileName=D14+59305.pdf[/url]



[url]http://registers.accc.gov.au/content/trimFile.phtml?trimFileTitle=D14+103741.pdf&trimFi leFromVersionId=1180413&trimFileName=D14+103741.pd f[/url]



Some nice tidbits I gleaned from it;



According to GW under 4(a);



"The notified conduct does not have the purpose of substantially lessening competition. Further, it is GWOP's view that the notified conduct will not have, or be likely to have, the substantial lessening of competition."

Their justification;

B&M stores will be encouraged to increase their range of services in order to get larger discounts (no specific amount of discounts are mentioned.) "As a result customers will benefit from the higher standard of service and support"

The new way of business will "offer consumers a high professional level of service" as well as "reduce the risk of Distance Selling Channel Outlets free riding on the investment made by Shop Front Channel Outlets"

Also note, GW was asked to provide 'Facts and evidence' to support their claims. GW declined...

GW recognizes the following as substitutable products;

Heroclix, Mage Knight, Star Trek Attack Wing, Monsterapocoloypse, Warmachine, Hordes, Iron Kingdom, Flames of War, Dust, Smallworld, Ticket to Ride, Battlestar Galactica, Star Wars X Wing, Dark Crusade, Carcassone, Dominion, Axis and Allies, Battlecry, Diplomacy, Risk, Spartacus, Firefly, plastic model kits, model trains, model scenery, diecast models, millitary action figures, radio controlled vehicles, Magic the Gathering, Dungeons and Dragons, Yu-Gi-Oh, Star Wars: The old republic, World of Warcraft, Starcraft, The Eldar Scrolls and Fallout.

"GWOP submits that there is no discernible public detriment in the proposed conduct"

"Consumers remain freely able to buy Hobby Products from a number of other third parties"

Once again; no facts given when requested by the ACCC

GWs response regarding the above list of products;

"The competitive suppliers listed in the Notification offer similar experiences to GWOP in relation to Hobby Products and Hobby Activities, however the Hobby Products and Hobby Activities which customers invest their time and money in are interchangeable. All Hobby Products within the Hobby Activities market may be substitutable for one another."

"To give an example, "Magic: The Gathering" (as referenced in section S(a)(iv)(A)(l) of the Notification) is a very popular collectible card game produced by Wizards of the Coast (a subsidiary of Hasbro) and sold by almost every Trade Account of GWOP. It is sold in the form of starter decks of cards, booster packs of cards, and individual cards. The cards are collected to form "decks" which are used to play in competitive game against opponents. These cards directly compete with the products sold by GWOP."

[Mr Mystery]

Ban online only stores it would seem.

[Wolfshade]

I have mixed feelings about online only stores.

On the one had they usually offer a far cheaper product than any real store, which for the consumer is a good thing. After all once you start dropping a few hundred pounds that 10-30% discount suddenly adds up.

On the other, all it does is take customers away from flgs. They don't actually do anything for the hobby, the exist to serve the market that others grow like the flgs (independent or chain). So in someways they are quite parasitic and if you take way a high street present then exposure of the hobby is limited to more word of mouth rather than any potential shop window captures.

I also feel that phyiscal stores are good for the hobby, the provide somewhere to meet up and play the game you spend monies on, they run tutorials and organise other events that probably wouldn't happen in a virtual community.

Unfortuantely, a retail store will never be able to compete with an online store. After all, the retail store will need to be somewhere with a significant footfall and be quite central for people across an area to visit, which usually puts them in retail centres, be they traditional city/town centres or in shopping centres, which will then have a much higher rental cost than with a dedicated warehouse for an online only habbit.

I would like to think that people would have some form of loyalty to their shop that they use and just swallow the cost, but times are changing and sometimes it is just not possible to or convienent to visit the store.

And what is good for the hobby is ultimately good for the individual, that is, the more hobbyists, playing a game, teh more money they spend so the more and better stuff that the hobby supplier, err, supplies.

Plus if you are running your own little flgs and spend ages teaching someone to play and getting them enthusasitc about a specifc game system only for them to then drop £100 with an online only firm, then turn back up to your store to use it and get advice on how to build and paint it, would be irritating at best.

I think this is more universally true than just for the specific case of GW.

I guess what I am saying is "support your local high street".

[Mr Mystery]

Yup. Pay where you play, and don't blame GW if your local B&M goes under - the petition here shows they want B&M store over online stores.

Other cost B&M stores have to factor in? Theft. Take X-Wing stuff. Teeny tiny little blisters, very easily slipped into a bag when no one is looking. Two or three and those, and you could potentially wipe out a fair chunk of that day's profits.

Online stores, not so much.

[Wolfshade]

No, the opportunity isn't there is it?

[Mr Mystery]

False reports of stuff not delivered I suppose.

[Wolfshade]

I am surprised at my views on this as originally I was quite opposed to it, and when they tried to do it elsewhere.

[Caitsidhe]

Actually, they just want their OWN online store to be available. They intend to use the Australian government to put their online competitors out of business while not affecting their own. Hence, when they downsize themselves into being almost entirely an online entity themselves, they can try to get others to enforce their monopoly at no cost to themselves.

[Wolfshade]

Given that GW have physical stores in Australia, I think it is fair enough and it seems to suggest that if I ran an independant phyiscal store which had an online store associated with it that would be fine. Unless I am miss-reading soemthing, whihc is probably the case as my office is far too hot 80+F and I was woken up at 5am this morning

[Caitsidhe]

Given that GW have physical stores in Australia, I think it is fair enough and it seems to suggest that if I ran an independant phyiscal store which had an online store associated with it that would be fine. Unless I am miss-reading soemthing, whihc is probably the case as my office is far too hot 80+F and I was woken up at 5am this morning

What you are missing is that there is no protection whatsoever if/when Games Workshop decides that it will no longer sell its product through the independent stores or if/when it reduces its own Brick & Mortar to nearly nothing (if not nothing). The point is to get the government to step in to police the competition at no cost to themselves. If there was some kind of guarantee that Games Workshop wasn't going to downsize their own stores and eventually reroute all its product, I would feel less antagonistic to this step. In the long run it is very bad for the consumer.

That being said, I also am not a fan of limiting consumer options under the "guise" of protecting local gaming stores. Most local gaming stores also have an online presence. If the rules were set so as to EXEMPT stores with a Brick & Mortar location as well as their online status, I would trust the motives more.