ACCC LAUNCHES APPEAL ON FLT PENALTIES

ACCC LAUNCHES APPEAL ON FLT PENALTIES
THE AUSTRALIAN Competition and Consumer Commission (ACCC) has lodged a cross-appeal in relation to a federal court judgement against Flight Centre (ASX: FLT) in December claiming the penalties imposed were not harsh enough to provide adequate deterrence.

The court found in December 2013 that FLT competed with international airlines for the retail or distribution margin on the sale of international air fares and that, on six occasions between 2005 and 2009, FLT had attempted to induce an anti-competitive arrangement with those airlines to eliminate differences in air fares so as to maintain FLT’s margins on each of those six occasions.

The judgment was handed down in March ordering FLT to pay penalties totalling $11 million.

The ACCC cross-appeal will contend that four of the penalties do not provide adequate deterrence, given the findings about the nature of the conduct and the size and financial strength of FLT.

“The penalties imposed in competition cases are hugely important to deter anti-competitive conduct,” says ACCC chairman Rod Sims (pictured).

“The ACCC is concerned generally to ensure that penalties for anti-competitive conduct in breach of the law are not viewed commercially as being an acceptable cost of doing business.”

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Four ways businesses can use artificial intelligence to triumph in 2022
Partner Content
The last two years have delivered major disruption to the technology industry and broad...
PROS
Advertisement

Related Stories

QLD Premier confirms borders to reopen four days early

QLD Premier confirms borders to reopen four days early

With Queensland health authorities expecting the 80 per cent double...

Cyber weekend sales make November the biggest month in Australian online shopping history

Cyber weekend sales make November the biggest month in Australian online shopping history

November was the biggest month in Australian online shopping histor...

Aussie Broadband launches $344m bid for Over The Wire

Aussie Broadband launches $344m bid for Over The Wire

One of Brisbane’s Top Companies Over The Wire (ASX: OTW) has ...

Woolworths takes on Wesfarmers in bid for Priceline with $872m offer

Woolworths takes on Wesfarmers in bid for Priceline with $872m offer

Woolworths Group (ASX: WOW) has today thrown its hat in the ring to...