Golf Australia is at the centre of a consumer watchdog complaint after it was accused of gaining an “unfair advantage” by creating a business product to target the handicap market which they already control.
Melbourne start-up Social Golf Australia has told the Australian Competition and Consumer Commission that golf’s governing body engaged in anti-competitive conduct by creating ‘The Golf Australia Club’ app, which allows weekend hackers to get an official handicap without joining a club.
SGA subscribers can keep an official handicap while teeing up at courses across the country, for less than $11 a month.
But Golf Australia is accused of entering the market it controls, allegedly gaining an “unfair advantage”.
Amateur golfer and SGA member Tom Tomlin and a Perth virtual golf club, The Golf Collective, have also filed submissions to the ACCC.
However, Golf Australia says the app is “complementing” the market, and not creating competition with other virtual golf clubs.
As virtual golf clubs, the SGA and The Golf Collective offer golfers the opportunity to buy an official handicap without needing to join a specific club, which can cost up to $5000 at the premier clubs.
The most expensive SGA membership costs about $10.65 a month. It has about 31,000 members across the country.
SGA alleges the GA Club app is a “carbon copy” of a range of existing providers in the virtual club market.
As the governing body, Golf Australia affiliates virtual golf clubs like SGA, meaning SGA members pay an affiliation fee which is passed onto Golf Australia, and redistributed back into the game.
SGA says the creation of the GA Club created a conflict of interest “because GA sets or influences affiliation and platform fee structures while also competing for members – claims Golf Australia refutes.
GA described its model as an all-in-one subscription that costs $124 (or $15 a month), offering additional “exclusive offers and promotions for GA Club members only”.
“Since 2006, we have been partners with Golf Australia, helping grow participation in the game by providing a pathway of access for casual and social golfers to progress to club membership,” SGA managing director Matthew Pitt said.
Since Golf Australia became a competitor, Mr Pitt said, it had “inverted that relationship”.
“Since the launch of the GA Club, the senior management we have dealt with for years have refused to talk with us,” he said. “They have effectively ended our relationship and changed it from treating us as a client and partner that pays them affiliation fees to an aggressive direct competitor.”
Previously, to add a score that contributed to their handicap, golfers had to play in a competition at their club.
But in 2014, Golf Australia announced golfers could submit a “conforming social score”, meaning social rounds by yourself or with mates could be added to your handicap – under certain conditions.
When the GA Club app was first available, members who nominated any other virtual golf club (SGA, The Golf Collective etc.) as their club received an error message that stated: “Your home club the SGA GC does not allow submission of conforming social scores for handicapping”.
SGA says Golf Australia did not remove the error message for two months, and only when lawyers got involved.
Golf Australia chief executive James Sutherland said the GA Club was created to “complement” the market, not “replace or compete” with other virtual clubs.
“Golf Australia Club was created to address a clear gap in the golfer journey between casual round players and club membership,” he said.
“Importantly, the introduction of Golf Australia Club has not changed the way existing social or virtual clubs operate.”
However, Mr Pitt said Golf Australia’s position was “nonsense”.