ACCC LAUNCHES APPEAL ON FLT PENALTIES

Written on the 9 May 2014

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.”

Latest News

AUSTRALIA READY TO DISRUPT GLOBAL CARBON FIBRE MANUFACTURING

AUSTRALIA for the first time has the capacity to produce carbon fibre from scratch and at scale, following the launch...

HONG KONG FUND INVESTS $212.8 MILLION IN G8 EDUCATION

G8 EDUCATION (ASX: GEM) has secured $212.8 million from Hong Kong-based CFCG Investment Partners to pay down debt and...

MERGER DELIVERS THE FINANCIAL GOODS FOR TERRY WHITE

TERRY White Group has posted a solid half-year net profit of $1.3 million amid a period of major transformation fo...

BLUE SKY APPOINTS TWO NEW INDEPENDENT DIRECTORS

BLUE Sky Alternative Investments (ASX: BLA) has appointed two new independent, non-executive directors to its board: ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter