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Flight Centre wins against competition appeal

Sarah Stowe

Flight Centre has successfully appealed against a price-fixing verdict handed down against it in late 2013 following action by the competition regulator, according to Business Spectator.

The travel agency was allegedly fined over $10 million after the Australian Competition and Consumer Commission (ACCC) launched action against the business in the Federal Court over breaches of the Trade Practices Act.

Last week the Federal Court overturned the decision, which brought the court to request the ACCC to repay the company’s legal costs. The millions in fines are to be repaid to the company and include 2015-16 financial results.

The court found last week that there was no separate market for booking and distribution services to its consumers, and thus as a consequence Flight Centre and the airlines did not compete with each other in the market.

“We welcome today’s judgement and hope that it now brings this six-year saga to an end,” Flight Centre managing director Graham Turner told Business Spectator.

“As an agent that provides considerable advice and help to the travelling public and extensive marketing for airlines, Flight Centre asks for appropriate commissions from suppliers and also reasonable access to all deals that they release to the market.”