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Oz regulators win appeal against Air NZ, Garuda in price-fixing case
THE Australian Competition and Consumer Commission has won an appeal at the federal court, after the ACCC's original proceedings against Garuda Indonesia and Air New Zealand were dismissed in 2014.
Even though the offence occurred overseas, which sustained a lower court ruling that Australia had no jurisdiction, the federal ruled that because the cargo touched Australian shores, the market was in Australia, which ligitimised the case.
The two are the only airlines out of 15 that haven't settled with the ACCC since the Australian regulator began proceedings for price fixing at ports outside of Australia on air cargo destined for the nation.
The federal court ruled that the price fixing did take place in a "market in Australia," reported New Zealand's Scoop Independent News.
"This decision is significant because it confirms the ACCC's view that the conduct by the airlines in fixing air cargo surcharges to be paid by Australian importers and ultimately passed on to Australian consumers were caught by Australian competition laws," the ACCC said.
Total fines of A$98.5 million (US$74.79 million) were imposed by the courts against the other 13 airlines that settled, with the largest, A$20 million, imposed on Qantas Airways.
The court has yet to determine the fines resulting from the ruling.
Even though the offence occurred overseas, which sustained a lower court ruling that Australia had no jurisdiction, the federal ruled that because the cargo touched Australian shores, the market was in Australia, which ligitimised the case.
The two are the only airlines out of 15 that haven't settled with the ACCC since the Australian regulator began proceedings for price fixing at ports outside of Australia on air cargo destined for the nation.
The federal court ruled that the price fixing did take place in a "market in Australia," reported New Zealand's Scoop Independent News.
"This decision is significant because it confirms the ACCC's view that the conduct by the airlines in fixing air cargo surcharges to be paid by Australian importers and ultimately passed on to Australian consumers were caught by Australian competition laws," the ACCC said.
Total fines of A$98.5 million (US$74.79 million) were imposed by the courts against the other 13 airlines that settled, with the largest, A$20 million, imposed on Qantas Airways.
The court has yet to determine the fines resulting from the ruling.
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