Mackay Chapman September 2024 ACCC Update

In this month’s ACCC update:

• Domestic airline competition under pressure;
• ACCC accepts enforceable undertaking from TPG;
• High court dismisses Captain Cook College’s appeal;
• High court grants special leave to appeal CFMEU/Hutchinson decision; and
• Dr. Philip Williams appointed an ACCC commissioner.

Domestic Airline Competition Under Pressure

The ACCC’s latest report on domestic airline competition highlights ongoing challenges alongside improvements in the sector. Following Rex’s withdrawal from metropolitan routes, the ACCC has closely monitored airfares and competition. The report indicates reduced airfares, fewer cancellations, and improved on-time performance in early 2024. However, the exit of Rex and Bonza from metropolitan routes means fewer competing airlines, potentially leading to higher airfares and fewer consumer choices over time.

ACCC Commissioner Anna Brakey noted that airfares have generally declined in 2024, particularly on routes with increased competition. Despite some improvements, the suspension of Rex’s services means careful monitoring is required to ensure that consumers benefit from competitive pricing. The ACCC will continue to oversee the market and engage with stakeholders to address competition issues in the aviation sector.

ACCC Accepts Undertaking from TPG

The ACCC has accepted a court-enforceable undertaking from TPG as part of its investigation into Google’s search services. TPG has agreed not to renew or enter into new exclusive agreements with Google to pre-install its search services on Android devices. This follows similar undertakings from Telstra and Optus.

ACCC Commissioner Liza Carver emphasised that this undertaking is crucial for enhancing consumer choice and competition in digital platforms. The ACCC’s broader investigation into Google’s search services continues, focusing on the competitive dynamics in the Australian market.

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High Court Dismisses Captain Cook College’s Appeal‍

The High Court has upheld findings against Captain Cook College for systemic unconscionable conduct under the VET FEE-HELP scheme. The college, alongside its parent company Site Group International Limited and former COO Blake Wills, was found to have exploited vulnerable students and misused government funds.

ACCC Commissioner Liza Carver welcomed the decision, highlighting that the college's actions led to significant student debt without providing vocational benefits. The case will now return to the Federal Court to determine orders for relief, including penalties.

High Court Grants Special Leave to Appeal CFMEU/Hutchinson Decision

The High Court granted the ACCC special leave to appeal a Full Federal Court decision overturning an earlier ruling against the CFMEU and J Hutchinson Pty Ltd. The original case involved allegations of an anti-competitive boycott arrangement. The ACCC’s appeal seeks clarification on the evidence required to prove such arrangements.

This appeal is crucial for defining the standards for proving anti-competitive conduct under competition law. The High Court will set a date for hearing the appeal.

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‍Dr. Philip Williams Appointed as ACCC Commissioner

Dr. Philip Williams AM has been appointed as an ACCC Commissioner for a five-year term starting June 27, 2024. Dr. Williams is a noted scholar in law and economics with extensive experience in competition and regulatory issues.

ACCC Chair Gina Cass-Gottlieb praised Dr. Williams’ expertise and contributions to competition law. The appointment coincides with Commissioner Stephen Ridgeway’s transition to Associate Commissioner, ensuring continued expertise within the ACCC.

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The contents of this article do not constitute legal advice and it is not intended to be a substitute for legal advice and should not be relied upon as such.  It is designed and intended as general information in summary form, current at the time of publication, for general informational purposes only.  You should seek legal advice or other professional advice in relation to any particular legal matters you or your organisation may have.