Australian Competition and Consumer Commission v Black & White Cabs Pty Ltd [2010] FCA 1399

Australian Competition and Consumer Commission v Black & White Cabs Pty Ltd [2010] FCA 1399

B&W Cabs engaged in third line forcing by making network and licence services available to operators on the condition they acquire electronic payment services from Cabcharge, an unrelated third party, thereby contravening section 47(1) of the Trade Practices Act 1974 (Cth). The agreed penalty and orders, including compliance program and injunction, were appropriate given the facts and precedents.

Parties
Applicant: Australian Competition and Consumer Commission; Respondent: Black & White Cabs Pty Ltd
Jurisdiction
Australia
Judgment Date
14 December 2010
Procedural Posture
Civil / Judgment and Final Orders
Outcome
Declarations made; injunction granted; pecuniary penalty imposed; compliance program ordered; costs ordered
Legal Topics
Exclusive Dealing, Third Line Forcing, Pecuniary Penalties, Compliance Programs, Injunctions
Competition Law Exclusive Dealing Third Line Forcing Pecuniary Penalties Compliance Programs Injunctions

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Parties

Australian Competition and Consumer Commission

Applicant

Black & White Cabs Pty Ltd

Respondent

Procedural Posture

Civil / Judgment and Final Orders

Legal Issues

  1. 1 Whether Black & White Cabs Pty Ltd contravened section 47(1) of the Trade Practices Act 1974 (Cth) by engaging in exclusive dealing (third line forcing)

Ratio Decidendi

B&W Cabs engaged in third line forcing by making network and licence services available to operators on the condition they acquire electronic payment services from Cabcharge, an unrelated third party, thereby contravening section 47(1) of the Trade Practices Act 1974 (Cth). The agreed penalty and orders, including compliance program and injunction, were appropriate given the facts and precedents.

Court Disposition

Declarations made; injunction granted; pecuniary penalty imposed; compliance program ordered; costs ordered

Orders

  • Declaration that B&W Cabs contravened section 47(1) of the Trade Practices Act 1974 (Cth) by exclusive dealing as defined by section 47(6)
  • Injunction restraining B&W Cabs for 5 years from supplying or offering to supply services on the condition that operators acquire goods or services from unrelated third parties including Cabcharge