ACCC to appeal air cargo cartel ruling

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Competition regulator intends to pursue Air New Zealand and Garuda Indonesia.

ACCC to appeal air cargo cartel ruling
Air New Zealand is being pursued over price fixing arrangements with PT Garuda Indonesia.

 

The Australian Competition and Consumer Commission (ACCC) is continuing its pursuit of Air Zealand and PT Garuda Indonesia for alleged cargo cartel conduct.

The ACCC says it has lodged an appeal against a Federal Court ruling dismissing the agency’s case against the airlines.

According to the ACCC, ACCC Air New Zealand and Garuda fixed the level of various surcharges to be applied to air cargo services between 2001 and 2006, in contravention of the Trade Practices Act, now called the Competition and Consumer Act.

In the court hearing, the trial judge found that although there were price fixing arrangements that may have had an effect on prices in Australia, the cartel conduct did not take place in a "market in Australia" in which the airlines were competing, as was required by the Act at the time.

"The ACCC’s appeal is solely focused on the court’s finding that there was no ‘market in Australia’," ACCC chairman Rod Sims says.

"Cartel conduct will always be a priority for the ACCC and we seek to take enforcement action in relation to all cartels that harm Australian consumers and businesses. For this reason, it is important that we seek clarity on whether the Act applies to the collusive arrangements identified by the court."

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