Application by Chime Communications Pty Ltd [2008] ACompT 4

Application by Chime Communications Pty Ltd [2008] ACompT 4

There was insufficient empirical evidence before the Tribunal to establish that granting exemptions from the standard access obligations in the subject exchanges would promote the long-term interests of end-users. Reliance on rules of thumb (such as 'one plus' or 'three plus' rules) without comprehensive empirical...

Source-derived case information.

Jurisdiction
Australia
Judgment Date
22 December 2008
Procedural Posture
Application for Review (telecommunications Access Regime) / Determination/reasoned Judgment After Hearing
Outcome
Application for review allowed; ACCC exemption decision set aside
Legal Topics
['telecommunications Access Regime' 'exemptions From Standard Access Obligations' 'market Competition Assessment' 'regulation and Deregulation' 'empirical Evidence in Competition Policy']
['competition Law' 'telecommunications Law' 'administrative Law'] ['telecommunications Access Regime' 'exemptions From Standard Access Obligations' 'market Competition Assessment' 'regulation and Deregulation' 'empirical Evidence in Competition Policy']

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Procedural Posture

Application for Review (telecommunications Access Regime) / Determination/reasoned Judgment After Hearing

Legal Issues

  1. 1 ['Whether exemption from standard access obligations for Telstra in certain exchanges would promote the long-term interests of end-users under s 152AT(4) of the Trade Practices Act 1974 (Cth)' "Whether a rule of thumb (such as 'one plus' or 'three plus' competitor standard) is appropriate for determining exemption" 'Whether sufficient empirical evidence supports deregulation in the relevant markets' 'What factors must be considered when deciding to remove regulated access obligations']

Ratio Decidendi

There was insufficient empirical evidence before the Tribunal to establish that granting exemptions from the standard access obligations in the subject exchanges would promote the long-term interests of end-users. Reliance on rules of thumb (such as 'one plus' or 'three plus' rules) without comprehensive empirical analysis of market dynamics, barriers to entry, and the competitive impact of new entrants was inadequate. Therefore, the statutory criterion for exemption under s 152AT(4) of the Act was not satisfied.

Court Disposition

Application for review allowed; ACCC exemption decision set aside

Orders

  • ['The decision of the Australian Competition and Consumer Commission made on or about 22 August 2008 to grant Telstra Corporation Limited the exemption orders set out in appendixes E to H and the class exemption orders set out in appendixes I and J in its decision be set aside.']