The competition watchdog has called for Flight Centre to be slugged with larger fines for its price fixing conviction after claiming the $11 million penalty the retailer received will not act as a deterrent.
A cross-appeal against the fines was lodged yesterday by the Australian Competition and Consumer Commission (ACCC).
Flight Centre has already appealed against the ruling and the penalties.
The ACCC argued that in four of Flight Centre’s six contraventions “the penalties imposed do not provide adequate deterrence” given the nature of the conduct and the “size and financial strength” of Flight Centre.
ACCC chairman Rod Sims said: “The penalties imposed in competition cases are hugely important to deter anti-competitive conduct.
“The ACCC is concerned generally to ensure that penalties for anti-competitive conduct in breach of the law are not viewed commercially as being an acceptable cost of doing business.”
Flight Centre, which was found to have attempted to enter into arrangements with Singapore Airlines, Malaysia Airlines and Emirates to ensure it was not undercut by the airlines, described the fines as “manifestly excessive” compared to other cases.
