Just when you thought it was over, the three-year battle between the ACCC and Flight Centre over alleged price-fixing could be heading back to court.
The Australian Competition and Consumer Commission (ACCC) this week sought out special leave from the High Court to appeal an overturned judgement issued by the Full Court of the Federal Court of Australia earlier this year that cleared Flight Centre of any alleged wrong-doing.
The long-running competition case was initiated back in 2012, when the ACCC accused Flight Centre of price fixing its international fares.
Initially Flight Centre was fined for allegedly attempting to arrange anti-competitive arrangements with airlines that prevented them from offering fares on their websites that would undercut Flight Centre’s airfares, The Australian reported.
Flight Centre immediately appealed the ruling and in July this year, the decision was overturned with the Full Court finding the company had been working as an agent for the airlines.
According to the agency group, the decision in its favour was unanimous and the ACCC was ordered to pay Flight Centre’s costs for both the initial Federal Court case and the appeal.
But now, the ACCC is hoping to have the latest ruling overturned by seeking out approval to appeal again.
The watchdog’s Chairman Rob Sims said the case raises ‘important issues for the application of competition laws in Australia in the future’.
“The ACCC had brought these proceedings because it was concerned that, if successful, Flight Centre’s actions were likely to have meant that consumers would not have seen the benefit of competition through lower ticket prices offered online by the airlines concerned.”
Rod Sims, ACCC Chairman
“This case also raises important issues for the application of competition laws in Australia in the future, as online offers are increasingly being made directly to consumers by both agents and their principals.”
Disappointed by the ACCC’s actions, Flight Centre Managing Director, Graham Turner, said the company is surprised the ACCC has ‘not accepted the clear and unanimous judgement’.
Turner assured that the company will oppose any action and defend its position.
“For more than 30 years the company has sought to deliver cheaper airfares to the travelling public.”
Graham Turner, Flight Centre Managing Director
“We are not in the business of attempting to make airfares more expensive and we will continue to seek access to all fares to ensure the millions of customers that we serve are not forced to pay more for their flights.”
