Australian Competition & Consumer Commission v Flight Centre Travel Group Limited

The Australian Competition & Consumer Commission (ACCC) brought proceedings against Flight Centre Travel Group Limited (Flight Centre) in the Federal Court of Australia. The ACCC alleged that Flight Centre had engaged in anti-competitive conduct by contravening section 47 of the *Competition and Consumer Act 2010* (Cth) (the Act), specifically by attempting to induce or likely to induce third parties to contravene section 47. The core of the dispute concerned Flight Centre's alleged attempts to prevent airlines from offering cheaper fares directly to consumers, thereby restricting competition in the market for air travel.

The primary legal issue before the court was whether Flight Centre had engaged in conduct that substantially lessened competition in a market in contravention of section 47 of the Act. This involved determining whether Flight Centre had engaged in exclusive dealing, and if so, whether that conduct had the proscribed effect on competition. The court was required to consider the nature of the market, Flight Centre's conduct, and the potential impact of that conduct on competition within that market.

The court found that Flight Centre had engaged in exclusive dealing by seeking to prevent airlines from offering lower prices directly to consumers. This conduct was found to have the purpose or effect of substantially lessening competition in the market for the supply of air travel. The court reasoned that Flight Centre's actions aimed to maintain its own business model by limiting the ability of airlines to compete on price directly with travel agents, thereby restricting consumer choice and competition. The court applied the principles of section 47 of the Act, focusing on the substantial lessening of competition test.

The Federal Court found in favour of the ACCC, holding that Flight Centre had contravened section 47 of the *Competition and Consumer Act 2010* (Cth).