International Law

Misuse of market power: ACCC v Cabcharge

By David Jacobson

Final orders have now been made in Australian Competition and Consumer Commission v Cabcharge Australia Ltd (here) whereby the Federal Court ordered Cabcharge to pay $15 million in penalties and costs for three contraventions of section 46 of the Trade Practices Act 1974. Unfortunately the Judge’s reasons have not been published yet.

Although the penalties were jointly submitted as agreed, the matter was hard fought as can be seen from Cabcharge’s media release.

Two contraventions related to a refusal by Cabcharge to allow competing suppliers of electronic payment processing services for taxis to process Cabcharge branded non-cash payment products. The third contravention related to the below cost supply of Cabcharge taxi meters and associated fare schedule updates for an anti-competitive purpose.

Justice Finkelstein made declarations for each of three contraventions of section 46(1) of the Trade Practices Act 1974 admitted by Cabcharge and ordered that Cabcharge pay a pecuniary penalty of $14 million for the contraventions, allocated as follows:

• $9 million in relation to Cabcharge’s refusal to deal with Mpos Australia Pty Ltd in 2008;
• $2 million in relation to Cabcharge’s refusal to deal with Travel Tab Australia Pty Ltd in 2005; and
• $3 million in relation to Cabcharge’s supply of taxi meters and fare schedule updates below cost between 2004 and 2007.

The court also made orders requiring Cabcharge to pay a contribution of $1 million towards the ACCC’s costs and to implement a trade practices corporate compliance program.

Full post as published by Australian Regulatory Compliance Review on November 18, 2010 (boomark / email).