Air Express Ltd v Ansett Transport Industries (Operations) Pty Ltd

Air Express Ltd (the applicant) sought to restrain Ansett Transport Industries (Operations) Pty Ltd (the respondent) from continuing certain practices in relation to the carriage of goods by air. The dispute concerned the respondent's alleged contravention of the *Trade Practices Act 1974* (Cth) (the Act), specifically provisions relating to exclusive dealing and the misuse of market power. The matter was heard by the High Court of Australia.

The High Court was required to determine whether the respondent had engaged in conduct that constituted exclusive dealing, thereby substantially lessening competition in a market. Furthermore, the court had to consider whether the respondent had taken advantage of its dominant position in the market for air freight services to the detriment of competitors, such as the applicant, in contravention of the Act. The interpretation and application of sections 45E, 46, and 47 of the *Trade Practices Act 1974* were central to the determination of these issues.

The court's reasoning focused on the nature of the agreements entered into by the respondent with its customers, which allegedly restricted those customers from using other air freight carriers. The judges examined the economic impact of these arrangements, assessing whether they had the effect or likely effect of substantially lessening competition in the relevant market. The principles of statutory interpretation were applied to ascertain the scope and intent of the prohibitions against exclusive dealing and the misuse of market power. The court considered the definition of "market" for the purposes of the Act and the evidence presented regarding the respondent's market share and competitive conduct.

The High Court ultimately found that the respondent had engaged in conduct that contravened the *Trade Practices Act 1974*. Orders were made restraining the respondent from continuing the offending practices and requiring it to take certain steps to remedy the situation.