Flight Centre Limited v Australian Competition and Consumer Commission [2015] FCAFC 104

Flight Centre Limited v Australian Competition and Consumer Commission [2015] FCAFC 104

Flight Centre and airlines did not compete in a market for distribution and booking services; Flight Centre acted solely as agent for airlines in relation to the supply of international passenger air travel services, and any services provided in selling, booking, or ticketing were provided for and on behalf of the airlines. There was no market for distribution and booking services in which both Flight Centre and the airlines competed in supply, and so s 45A did not apply. The conduct occurred in the market for supply of international air travel services—a market in which Flight Centre did not compete with airlines. As such, the appeal succeeds and prior orders against Flight Centre are to...

Jurisdiction
Australia
Judgment Date
31 July 2015
Procedural Posture
Appeal / Judgment on Appeal From Federal Court (primary Judge)
Outcome
Appeal allowed; cross-appeal dismissed.
Legal Topics
['market Definition' 'agency Relationship' 'price Fixing' 'section 45 and 45 a Trade Practices Act 1974' 'competition Between Travel Agents and Airlines']
['competition Law'] ['market Definition' 'agency Relationship' 'price Fixing' 'section 45 and 45 a Trade Practices Act 1974' 'competition Between Travel Agents and Airlines']

Case Brief

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Procedural Posture

Appeal / Judgment on Appeal From Federal Court (primary Judge)

Legal Issues

  1. 1 ['Did Flight Centre and international airlines compete in a market for distribution and booking services within the meaning of sections 45 and 45A of the Trade Practices Act 1974?' 'Was there an attempt to induce a contract or arrangement with the purpose or likely effect of substantially lessening competition?' 'Does the agency relationship preclude competition for the purposes of s 45A?']

Ratio Decidendi

Flight Centre and airlines did not compete in a market for distribution and booking services; Flight Centre acted solely as agent for airlines in relation to the supply of international passenger air travel services, and any services provided in selling, booking, or ticketing were provided for and on behalf of the airlines. There was no market for distribution and booking services in which both Flight Centre and the airlines competed in supply, and so s 45A did not apply. The conduct occurred in the market for supply of international air travel services—a market in which Flight Centre did not compete with airlines. As such, the appeal succeeds and prior orders against Flight Centre are to...

Court Disposition

Appeal allowed; cross-appeal dismissed.

Orders

  • ['The appeal be allowed.' 'The orders made by the Court on 28 March 2014 be set aside and in lieu thereof there be an order that the application be dismissed with costs.' "The respondent pay the appellant's costs of the appeal." 'The cross-appeal be dismissed.' "The respondent pay the appellant's costs of the...