Fancy a $20m fine? The ACCC clamps down on air freight price fixing

Posted: 08/09/2009 On 18 August 2009, the Australian Competition & Consumer Commission (“ACCC”) initiated proceedings against Emirates in respect of alleged air freight price fixing. The ACCC alleges that between 2002 and 2006, Emirates, in contravention of the Trade Practices Act 1974 (Cth), entered into ‘arrangements’ or ‘understandings’ with other international air cargo carriers that had the purpose and effect of fixing the price of certain fuel and security surcharges and rates (relevant to air cargo carried by Emirates and other airlines). A directions hearing has been set down for 11 September 2009 at the Federal Court in Sydney. The ACCC is seeking declarations, injunctive relief, pecuniary penalties and costs. Emirates is the ninth airline to be the subject of ACCC proceedings for fuel surcharge price fixing. On 11 December 2008, Qantas Airways Limited and British Airways PLC were ordered by the Federal Court to pay penalties of $20m and $5m respectively. On 16 February 2009, a further four airlines were ordered to pay a total of $21m (collectively). Proceedings in the Federal Court against Singapore Airlines Pte Ltd and Cathay Pacific Airways Ltd remain on foot. If you require advice on the application of the new cartel provisions, please contact us.