Flight Centre v ACCC (Full Federal Court)

Federal Court of Australia (Full Court)

[2015] FCAFA 104 (31 July 2015)

Chief Justice Allsop
Justices Davies and Wigney

See also

• ACCC v Flight Centre Travel Group Limited [2016] HCA 49 (14 December 2016)

• Flight Centre Limited v ACCC [2015] FCAFC 104 (31 July 2015)

• ACCC v Flight Centre Limited (No 2) [2013] FCA 1313 (6 December 2013)

On 17 April 2014 Flight Centre lodged an appeal against the Federal Court's judgment in ACCC v Flight Centre Limited (No 2) [2013] FCA 1313 and against the penalties subsequently imposed. The grounds for appeal related to the 'the primary judge’s characterisation of the services supplied by the airlines and Flight Centre, and the finding that the airlines and Flight Centre competed in a market for the supply of distribution and booking services. In relation to penalty, Flight Centre’s sole appeal ground is that the pecuniary penalty imposed by the primary judge is manifestly excessive.' [para 6 appeal]

On 8 May 2014 the ACCC lodged a cross-appeal in relation to penalties, claiming the $11m penalty imposed on Flight Centre did not provide adequate deterrence.

On 31 July 2015 the Full Federal Court upheld Flight Centre's appeal and dismissed the ACCC's cross-appeal.

The decision

The Full Federal Court concluded that Flight Centre and the airlines did not compete in a market for booking and distribution services and the 'primary judge was wrong to conclude otherwise' (para 168). The appeal was allowed.