Australian Competition and Consumer Commission v Visa Inc

The Australian Competition and Consumer Commission initiated proceedings against Visa Inc, alleging that the respondent had contravened section 47 of the Competition and Consumer Act 2010 by engaging in exclusive dealing practices. The Federal Court of Australia was tasked with determining whether the ACCC was entitled to declaratory relief and a pecuniary penalty under the Act. The court was also required to consider the principles relevant to determining an appropriate pecuniary penalty pursuant to section 76 of the Competition and Consumer Act 2010.

The court found that Visa Inc had engaged in exclusive dealing practices that were contrary to section 47 of the Act. The court considered the principles for determining an appropriate pecuniary penalty, including the gravity of the contravention, the conduct of the contravener, and the deterrence and public interest considerations. The court held that the penalty should be significant enough to deter future contraventions, and to ensure that the contravention did not confer any significant benefit on the contravener. The court found that the appropriate penalty in this case was AU$18 million, and ordered the respondent to pay this amount within 28 days of the date of the order.

The court also ordered that the respondent pay the ACCC’s costs of and incidental to the proceeding, agreed in the sum of AU$2 million. The application for declaratory relief was dismissed, as the court found that such relief was not necessary in the circumstances of the case. The orders of the court were made pursuant to Rule 39.32 of the Federal Court Rules 2011.