The Federal Court of Australia has dismissed an action commenced
by the Australian Competition and
Consumer Commission (ACCC) against Air New Zealand Ltd (Air NZ)
and PT Garuda Indonesia Ltd (Garuda). The ACCC alleged that Air NZ
and Garuda had in place arrangements or understandings with other
international airlines between 2001 and 2006, and that those
arrangements or understandings went to fix fuel, security and
insurance surcharges on air cargo services. In other words Air NZ
and Garuda were alleged to be part of a global cartel to fix such
prices.
Air NZ and Garuda defended the action by claiming that although
the surcharges did exist and interfered with competition in other
countries (Hong Kong, Singapore and Indonesia) they did not exist
in Australia. Justice Nye Perram agreed and held that the conduct
did not take place in a 'market in Australia' as required
by the Trade Practices Act 1974 (which has now been replaced by the
Competition and Consumer Act 2010)
