Flight Centre Travel Group Ltd (ASX: FLT) has won its appeal in the Full Court of the Federal Court of Australia today against the ACCC after a 6-year battle.
The Australian Consumer and Competition Commission (ACCC) had alleged that Flight Centre had engaged in price fixing on six occasions between 2005 and 2009 and had breached the Trade Practices Act 1974.
The ACCC said at the time that Flight Centre had "attempted to induce airlines Singapore Airlines, Malaysian Airlines and Emirates to agree to stop directly offering and booking their own international airfares (including over the internet) at prices less than Flight Centre offered."
Flight Centre rejected the allegations saying it "related to legitimate discussions between Flight Centre and some airlines to ensure that Flight Centre had access to all fares that were released to the market."
Managing director Graham Turner said today, "Given that travel agents book up to 80% of international flights in Australia, it benefits consumers because it means special offers are not solely available from supplier websites."
In 2013, the Federal Court awarded judgement to the ACCC and imposed penalties on Flight Centre of $11 million – which was paid in 2013/2014. Today's judgement means Flight Centre will be repaid the $11 million plus interest, which will be included in its 2016 financial year results.
The amount is inconsequential, but it hopefully means that Flight Centre can continue to do business the way it has in the past and no longer has this case hanging over its head.
It remains to be seen whether the ACCC will appeal.
