Australia: Two more air freight carriers face cartel charges by the ACCC

The Australian Competition and Consumer Commission has won an appeal against a decision made by the Australian Federal Court to dismiss the case against Air New Zealand and PT Garuda Indonesia, over allegations that the two cargo carriers colluded with other airlines to fix fuel and security surcharges on air shipments around the world.

The two carriers remain the only two companies not to settle with the antitrust regulator in a case that has seen the ACCC collect around A$98.5 million in fines from several air freight carriers involved in a cartel conspiracy.

In its proceedings, the ACCC alleged that Air NZ and Garuda violated what is now the Competition and Consumer Act 2010 by colluding with other airlines to fix the price on various surcharges between 2001 and 2006.

In October 2014, Justice Perram dismissed the ACCC’s proceedings against the two airlines on the basis that the conduct which he found otherwise would have contravened the then Trade Practices Act 1974 (now called the Competition and Consumer Act 2010) did not do so as it did not occur in a ‘market in Australia’ as was required by the Act at the time of the conduct.

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