Australian Postal Corporation v Sendle Pty Ltd

The Australian Postal Corporation (Australia Post) brought proceedings against Sendle Pty Ltd (Sendle) in the Federal Court of Australia. The dispute concerned Sendle's alleged contravention of section 46 of the Competition and Consumer Act 2010 (Cth) (CCA), which prohibits misuse of market power. Australia Post contended that Sendle had engaged in anti-competitive conduct by offering certain services at prices that were below its cost of supply, thereby misusing its alleged substantial degree of market power in the market for parcel delivery services in Australia.

The primary legal issue before the Court was whether Sendle had engaged in conduct that constituted a misuse of market power under section 46 of the CCA. This required the Court to determine, among other things, whether Sendle possessed a substantial degree of market power in the relevant market and, if so, whether its conduct of offering services below cost was for the purpose of eliminating or substantially damaging a competitor, preventing the entry of a competitor, or deterring or preventing a person from engaging in competitive conduct.

Justice Debrett Lyons found that Australia Post had failed to establish that Sendle possessed a substantial degree of market power in the relevant market. The Court considered the evidence presented regarding market definition, Sendle's market share, and the competitive dynamics within the parcel delivery sector. Without a finding of substantial market power, the Court did not need to determine whether Sendle's conduct was for an anti-competitive purpose. Consequently, the Court dismissed Australia Post's application.