P.T. Garuda Indonesia Ltd v Australian Competition & Consumer Commission

The High Court of Australia considered an appeal by P.T. Garuda Indonesia Ltd (Garuda) against a decision of the Full Federal Court, which had upheld a finding by the Australian Competition and Consumer Commission (ACCC) that Garuda had engaged in anti-competitive conduct. The dispute concerned allegations that Garuda, along with other international airlines, had engaged in price fixing and cartel conduct in relation to freight charges for air cargo services from Indonesia to Australia.

The primary legal issue before the High Court was whether the conduct of Garuda, an Indonesian incorporated company, in relation to international air cargo services originating from Indonesia, fell within the scope of Australia's competition law, specifically the *Trade Practices Act 1974* (Cth) (now the *Competition and Consumer Act 2010* (Cth)). This involved determining the extraterritorial reach of the Act and whether it applied to conduct occurring outside Australia that had the effect of substantially lessening competition within Australia.

The High Court, by majority, held that the *Trade Practices Act 1974* had extraterritorial operation and applied to the conduct in question. The Court reasoned that the Act was intended to apply to conduct that had a substantial effect on competition within Australia, regardless of where the conduct occurred. The Court found that the alleged price fixing arrangements for air cargo services from Indonesia to Australia had such an effect, thereby bringing Garuda's conduct within the purview of Australian competition law. The appeal was dismissed.