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Australian Competition and Consumer Commission v White Top Taxis Ltd [2009] FCA 88 (13 February 2009)
Last Updated: 17 February 2009
FEDERAL COURT OF AUSTRALIA
Australian Competition and Consumer
Commission v White Top Taxis Ltd [2009] FCA 88
TRADE PRACTICES – exclusionary
provision – whether arrangement for a proscribed purpose –
class of persons excluded – appropriate
penalty –
determination of – factors taken into account
Competition Code of Victoria, ss 4D,
45(2)(a)(i), 45(2)(b)(i), 76
Australian Competition and Consumer Commission v
Dataline.Net.AU Pty Ltd (2007) 161 FCR 513
Australian Competition and
Consumer Commission v IPM Operation and Maintenance Loy Yang Pty Ltd (2006)
157 FCR 162
Australian Competition and Consumer Commission v Knight
[2007] ATPR 42-165
J McPhee & Son (Aust) Pty Ltd v Australian
Competition and Consumer Commission [2000] FCA 365; (2000) 172 ALR 532
Minister for
Industry, Tourism and Resources v Mobil Oil Australia Pty Ltd [2004] FCAFC 72; [2004] ATPR
41-993
News Limited v South Sydney [2003] HCA 45; (2003) 215 CLR 563
NW Frozen
Foods Pty Ltd v Australian Consumer and Competition Commission [1996] FCA 1134; (1997) 71 FCR
285
Rural Press Limited v Australian Competition and Consumer Commission
[2003] HCA 75; (2003) 216 CLR 53
Trade Practices Commission v CSR Ltd [1991] ATPR
41-076
Trade Practices Commission v Mobil Oil Australia Ltd [1984] FCA 363; (1984) 4
FCR 296
Trade Practices Commission v Prestige Motors Pty Ltd [1994]
ATPR 41-359
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION v
WHITE TOP TAXIS LIMITED (ACN 050 026 009), REX POWELL, ALLAN BEMROSE, ANTHONY
MASON
and GEOFFREY GROVES
VID 629 of 2008
FINKELSTEIN J
13 FEBRUARY 2009
MELBOURNE
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IN THE FEDERAL COURT OF AUSTRALIA
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VICTORIA DISTRICT REGISTRY
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AUSTRALIAN COMPETITION AND CONSUMER
COMMISSIONApplicant
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AND:
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WHITE TOP TAXIS LIMITED (ACN 050 026
009)First Respondent
REX POWELL Second Respondent
ALLAN BEMROSE Third Respondent
ANTHONY MASON Fourth Respondent
GEOFFREY GROVES Fifth Respondent
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DATE OF ORDER:
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WHERE MADE:
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THE COURT DECLARES THAT:
- Each
of the second to fourth respondents, throughout the period from October 2003 to
18 June 2008, was a party to an arrangement or
understanding between themselves
and other operators of taxi-cabs within the meaning of the Transport Act
1983 (Vic) (Taxi-Cabs) in the Shepparton area who were members of the
first respondent or lessees of licences held by members (Operators of WTT
Taxi-Cabs), and the fifth respondent, that allocated shifts covering each week
defined by start and finish times to Operators of
WTT Taxi-Cabs pursuant to
rosters published from time to time (Roster Arrangement), and which contained a
provision that Operators
of WTT Taxi-Cabs whose taxis were the subject of the
rosters would not operate their Taxi-Cabs during other times except:
- (a) in
compliance with requests of the first respondent to drive at other times;
- (b) to complete
jobs commenced before the end of a shift allocated to their Taxi-Cab in the
roster; or
(c) to continue to operate in the Operator’s discretion for a period after
the end of a shift allocated to their Taxi-Cab in
the roster for so long as
there were queues at taxi ranks in Shepparton at the time,
(Roster-off
Provision) which provision:
(d) had the purpose of
preventing, restricting or limiting the supply of taxi services by the second to
fifth respondents and other
Operators of WRR Taxi-Cabs to:
- (i) passengers
and potential passengers of Taxi-Cabs in the Shepparton
area; and
(ii) passengers and potential passengers of Taxi-Cabs in the Shepparton area
in particular circumstances or on particular conditions;
and
(e) thereby constituted an exclusionary provision or provisions within the
meaning of section 4D of the Code,
and thereby contravened section
45(2)(a)(i) of the Competition Code of Victoria (the Code).
- Each
of the second to fifth respondents, from October 2003 to 18 June 2008,
contravened section 45(2)(b)(i) of the Code, by giving
effect to the Roster-off
Provision of the Roster Arrangement, between themselves and other Operators of
WTT Taxi-Cabs by not operating
their Taxi-Cabs outside of the times when their
Taxi-Cabs were rostered to be operated.
- Each
of the second to fourth respondents, from April 2006 to January 2007, engaged in
conduct of the kind referred to in sections
76(1)(d) and 80(1)(d) of the Code,
by attempting to induce Operators of WTT Taxi-Cabs, in contravention of section
45(2)(b)(i) of
the Code, to give effect to the Roster-off Provision in the
Roster Arrangement, between themselves and other Operators of WTT Taxi-Cabs
by
making statements at a meeting of Operators of WTT Taxi-Cabs on 9 April 2006 and
producing and disseminating to Operators of WTT
Taxi-Cabs rosters and other
correspondence and newsletters relating to the Roster Arrangement.
- Each
of the fourth and fifth respondents, during 2004 and early 2005, engaged in
conduct of the kind referred to in sections 76(1)(d)
and 80(1)(d) of the Code,
by attempting to induce Operators of WTT Taxi-Cabs, in contravention of section
45(2)(b)(i) of the Code,
to give effect to the Roster-off Provision of the
Roster Arrangement, between themselves and other Operators of WTT Taxi-Cabs by
telling other Operators of WTT Taxi-Cabs who were operating Taxi-Cabs outside of
the times when the Taxi-Cabs were rostered to operate
to finish and go home.
- Each
of the second to fourth respondents, from October 2003 to November 2007, engaged
in conduct of the kind referred to in sections
76(1)(c) and 80(1)(c) of the Code
by aiding the contraventions of the Code referred to in paragraph 2 of this
order by others of
the second to fourth respondents and the fifth respondent by
producing and disseminating rosters to Operators of WTT Taxi-Cabs.
- The
first respondent, by reason of the knowledge, intentions, purposes and conduct
of the second, third and fourth respondents as
directors of the first
respondent:
(a) from April 2006 to January 2007, engaged in conduct
of the kind referred to in sections 76(1)(d) and 80(1)(d) of the Code, by
attempting to induce Operators of WTT Taxi-Cabs, in contravention of section
45(2)(b)(i) of the Code, to give effect to the Roster-off
Provision of the
Roster Arrangement between themselves and other Operators of WTT Taxi-Cabs by
producing and disseminating to Operators
of WTT Taxi-Cabs correspondence and
newsletters relating to the rosters ; and
(b) from October 2003 to November 2007, engaged in conduct of the kind
referred to in sections 76(1)(c) and 80(1)(c) of the Code
by aiding the
contraventions of the Competition Code referred to in paragraph 2 of this order
by the second to fifth respondents
by producing and disseminating rosters to
Operators of WTT Taxi-Cabs.
THE COURT ORDERS THAT:
- Each
of the second to fifth respondents be restrained, whether by themselves, their
servants or agents or otherwise howsoever, for
a period of three years from the
date of this order, from:
(a) making or attempting to make a contract, an arrangement or an understanding,
where two or more of the parties to the said contract,
arrangement or
understanding are Operators of WTT Taxi-Cabs, which allocates shifts with start
and finish times to Operators of WTT
Taxi-Cabs and contains a provision that
Operators of WTT Taxi-Cabs will not operate their Taxi-Cabs during other times;
and
(b) giving effect to a provision of a contract, an
arrangement or an understanding, where two or more of the parties to the said
contract,
arrangement or understanding are Operators of WTT Taxi-Cabs, which
allocates shifts with start and finish times to Operators of WTT
Taxi-Cabs and
contains a provision that Operators of WTT Taxi-Cabs will not operate their
Taxi-Cabs during other times.
- The
first respondent be restrained, whether by itself, its servants or agents or
otherwise howsoever, for a period of three years
from the date of this order
from in any way, directly or indirectly, being knowingly concerned in or party
to any Operator of a WTT
Taxi-Cab:
(a) making a contract, an arrangement or an understanding, where two or more of
the parties to the said arrangement or understanding
are Operators of WTT
Taxi-Cabs, which allocates shifts with start and finish times to Operators of
WTT Taxi-Cabs and contains a provision
that Operators of WTT Taxi-Cabs will not
operate their Taxi-Cabs during other times; and
(b) giving effect to a provision of a contract, an
arrangement or an understanding, where two or more of the parties to the said
contract,
arrangement or understanding are Operators of WTT Taxi-Cabs, which
allocates shifts with start and finish times to Operators of WTT
Taxi-Cabs and
contains a provision that Operators of WTT Taxi-Cabs will not operate their
Taxi-Cabs during other times.
- The
first respondent pay to the Commonwealth of Australia a pecuniary penalty in the
sum of $30,000.00 in respect of the conduct referred
to in paragraph 6 of this
order payable in three equal instalments by 30 March 2009, 30 March 2010 and
30 March 2011.
- The
second respondent pay to the Commonwealth of Australia a pecuniary penalty in
the sum of 14,000.00 in respect of the conduct referred
to in paragraphs 1, 2, 3 and 5 of this order payable as
follows:
(a) $4,666.66 by 30 March 2009;
(b) $4,666.66 by 30 March 2010;
and
(c) $4,666.68 by 30 March 2011.
- The
third respondent pay to the Commonwealth of Australia a pecuniary penalty in the
sum of $14,000.00 in respect of the conduct referred
to in paragraphs 1, 2, 3 and 5 of this order payable as
follows:
(a) $4,666.66 by 30 March 2009;
(b) $4,666.66 by 30 March 2010;
and
(c) $4,666.68 by 30 March 2011.
- The
fourth respondent pay to the Commonwealth of Australia a pecuniary penalty in
the sum of $14,000.00 in respect of the conduct
referred to in paragraphs 1 to 5 of this order payable as
follows:
(a) $4,666.66 by 30 March 2009;
(b) $4,666.66 by 30 March 2010;
and
(c) $4,666.68 by 30 March 2011.
- The
fifth respondent pay to the Commonwealth of Australia a pecuniary penalty in the
sum of $5,000.00 in respect of the conduct of
the fifth respondent referred to
above in paragraphs 1, 2 and 4 of this
order payable as follows:
(a) $1,666.66 by 30 March 2009;
(b) $1,666.66 by 30 March 2010;
and
(c) $1,666.68 by 30 March 2011.
- The
first respondent, within three months of the date of this order, establish and
implement a corporate compliance program for the
directors of the first
respondent from time to time designed to ensure their awareness of their
responsibilities and obligations
pursuant to Part IV of the Code, in accordance
with the terms of Annexure 1 to this order.
- The
respondents pay the applicant’s costs of and incidental to this proceeding
in the sum of $15,000.00.
Note: Settlement and entry of orders is dealt with in Order 36 of
the Federal Court Rules.
The text of entered orders can be located using
eSearch on the Court’s website.
ANNEXURE 1
COMPETITION CODE OF VICTORIA COMPLIANCE PROGRAM
- The
first respondent will cause the directors of the first respondent from time to
time to attend a Code Compliance Seminar conducted
by an independent person with
appropriate knowledge of the Competition Code of Victoria (Code) each year for a
period of three years
after the date of this Order.
- The
Code Compliance Seminar will address the provisions of Part IV of the Code and
will, in particular, address the issues of exclusionary
provisions and
arrangements or understandings that have the purpose, or have or are likely to
have the effect, of substantially lessening
competition.
- The
first respondent will cause the directors of the first respondent from time to
time to read out a statement at each Annual General
Meeting of the first
respondent for a period of three years from the date of this Order informing the
members of the first respondent
of the operation, and the penalties for
contravention, of Part IV of the Code.
- The
first respondent will publish and distribute to the members of the first
respondent a newsletter each year for a period of three
years following the date
of this Order which informs the members of the operation, and the penalties for
contravention of, Part IV
of the Code.
- The
first respondent will engage an independent person with appropriate knowledge of
the Code to review its business each year for
a period of three years from the
date of this Order to advise it on its compliance with Part IV of the Code.
- The
first respondent will ensure that documentary records of its compliance with
paragraphs 1 to 5 above are maintained and are available
to the Australian
Competition and Consumer Commission (ACCC), to be reviewed from time to time.
Such records are to be provided
to the ACCC within seven working days of a
written request for those records.
IN THE FEDERAL COURT OF AUSTRALIA
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VICTORIA DISTRICT REGISTRY
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VID 629 of 2008
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|
BETWEEN:
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AUSTRALIAN COMPETITION AND CONSUMER
COMMISSION
Applicant
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AND:
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WHITE TOP TAXIS LIMITED (ACN 050 026
009)
First Respondent
REX POWELL
Second Respondent
ALLAN BEMROSE
Third Respondent
ANTHONY
MASON
Fourth Respondent
GEOFFREY GROVES
Fifth Respondent
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|
JUDGE:
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FINKELSTEIN J
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DATE:
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13 FEBRUARY 2009
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PLACE:
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MELBOURNE
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REASONS FOR JUDGMENT
- The
Australian Competition and Consumer Commission (ACCC) alleges that the second to
fifth respondents, three of whom are directors
of the first respondent, White
Top Taxis Limited (WTT), contravened s 45(2) of the Competition Code of
Victoria (Code) (as applied by the Competition Policy Reform (Victoria)
Act 1995 (Vic)) and that WTT, contrary to s 45(2)(b)(i), was involved
in those contraventions. The remedies sought include declarations, injunctions
and the imposition of pecuniary penalties.
The respondents admit the
contraventions alleged against them. They have joined with the ACCC in making
submissions regarding the
orders to be made.
- A
thumbnail sketch of the facts is sufficient. WTT carries on business providing
taxi-cab network services. It is the sole provider
of taxi-cab network services
in the Shepparton area. At relevant times 21 WTT taxi-cab operators were
licensed under the Transport Act 1987 (Vic) to operate taxi-cabs in the
Shepparton area. It was a condition of each license that the owner of the
taxi-cab be a member
of a network service. Hence each owner of each Shepparton
taxi-cab became a member of WTT.
- The
conduct said to contravene s 45(2) is the roster system established by WTT
many years ago and implemented by the individual
respondents. The roster system
operated as follows. From time to time the directors of WTT published rosters
that set out the shifts
(including start and finish times) that each taxi-cab
was to operate. The directors procured each operator to agree to operate his
taxi-cab or cause his taxi-cab to be operated during the shifts allotted to
their taxi-cab in the roster (roster-on provision) and
would not operate his
taxi-cab and cause their taxi-cab not to be operated during other times
(roster-off provision). There were
exceptions to this arrangement. Operators
could be required to operate their taxi-cab or cause their taxi-cab to be
operated at
times outside their roster, to complete jobs commenced before the
end of a shift allotted to their taxi-cab or to continue to operate
in the
operator’s discretion for a period after the end of a shift allotted to
their taxi-cab in the roster for so long as
there were queues at taxi-cab ranks
in Shepparton.
- The
purpose of the roster-on provision was to ensure the presence of taxi-cabs
available to supply taxi-cab services in the Shepparton
area during times when
WTT predicted there would be low demand and to distribute the burden of working
at those times evenly in accordance
with the roster, thereby attempting to share
evenly between taxi-cab operators the burden of being available during those
times over
the period of the roster. The roster-on provision necessarily
imposed a commercial and personal burden on each operator that complied
with the
provision in that the operator operated their taxi-cab at personally
inconvenient hours of the day when there was low demand
for taxi-cab
services.
- The
purpose of the roster-off provision was to restrict the number of taxi-cabs
available during times when WTT predicted that there
would be average and not
high demand, thereby attempting to share evenly between operators the work
available at those times over
the period of the roster.
- The
first question that arises is whether the roster system infringes s 45(2).
That sub-section prohibits a person from making
a contract or arrangement or
arriving at an understanding if a provision of that contract, arrangement or
understanding contained
an exclusionary provision. The giving effect to such a
provision is also prohibited. The term “exclusionary provision”
is
defined in s 4D of the Code. It provides that a provision is an
exclusionary provision if it was between competitors and
has the purpose of
preventing, restricting or limiting the supply of goods or services to
particular persons or classes of persons
or particular persons or classes of
persons in particular circumstances or on particular conditions.
- The
issue here is whether the roster-off provision is an exclusionary provision.
ACCC says that it is because it has the purpose
of restricting the supply of
taxi-cab services to passengers and potential passengers of taxi-cabs in the
Shepparton area in particular
circumstances or on particular conditions. The
particular circumstances are the times under which WTT predicted there would be
average
and not high demand for taxi-cab services. ACCC contends that the
passengers and potential passengers are classes of persons within
the meaning of
s 4D.
- In
Rural Press Limited v Australian Competition and Consumer Commission
[2003] HCA 75; (2003) 216 CLR 53 the High Court considered the meaning of s 4D(1) of
the Trade Practices Act 1974 (Cth) (TPA), which is in the
same terms as the Code. A regional newspaper, the “Murray Valley
Standard”, circulated in an area
where few other newspapers were
published. Another newspaper, the “River News”, which had its own
circulation area,
moved into part of the Standard’s circulation area. The
publisher of the Standard informed the publisher of the River News
that unless
the River News was withdrawn from the Standard’s area, the publisher of
the Standard would distribute a new newspaper
in the River News’ original
circulation area. The publisher of the River News then removed it from the
Standard’s area.
ACCC alleged that each of the publishers had contravened
s 45(2) of the TPA, in which s 45 of the Code is based.
- The
High Court found that there had been a contravention on the basis that there was
an arrangement or understanding the purpose of
which was to prevent, restrict or
limit the supply of goods or services to particular classes of persons, namely
“the readers
and advertisers of newspaper services”: Rural Press
[2003] HCA 75; (2003) 216 CLR 53, 54. In the course of their joint judgment Gleeson
CJ and Callinan J said (at 61):
[T]he statutory concept of a provision (of a contract, arrangement or
understanding) which has the purpose of preventing, restricting
or limiting
supply to or acquisition from particular persons or classes of persons. This is
a compound concept involving a certain
kind of purpose, having as its object
particular persons or classes of persons. The particularity of the persons or
classes of persons
who are the objects of the purpose as defined and proscribed
is essential to the concept of an exclusionary provision. The significance
of a
finding that a provision is an exclusionary provision within s 4D and s
45(2)(a)(i) and (b)(i) is that such a finding engages a per se legislative
prohibition. It becomes unnecessary to consider whether it has the
purpose or
effect of substantially lessening competition in a market
- The
judges warned that if consideration were not given to the “compound
nature” of the concept “there is a danger
that s 4D would be
given an operation that would greatly reduce the statutory significance of
lessening competition, in relation to agreements
between competitors
generally”: Rural Press at 61. They gave as an illustration the
following (at 61):
If two hairdressers in a suburban main street were to have an understanding that
one would provide services to men, and one would
provide services to women, it
may be unlikely that their understanding would involve a substantial lessening
of competition in a
market. It would be surprising if it were held,
nevertheless, to contravene the Act. To the extent to which it had an
anti-competitive
purpose, that purpose would not be ‘directed
toward’ particular persons or classes of persons.
- It
is also important to note that the High Court said that a class was adequately
defined even though the identity of all its members
might not be readily
ascertainable: Rural Press at 90.
- Section
4D speaks of “the purpose” of the contract, arrangement or
understanding rather than any adverse effect which
the arrangement might have on
competition: News Limited v South Sydney [2003] HCA 45; (2003) 215 CLR 563, 584.
The purpose is to be determined by ascertaining the effect or effects the
parties sought through the inclusion of the impugned
provision: News
Limited at 585. This requires an examination of the purposes of the
individuals through whom the provision was included in the contract,
arrangement, or understanding in question. An examination of the objective
purpose will give undue significance to the substantive
effect of the provision,
as opposed to the effect that the parties sought to achieve through its
inclusion: News Limited at 586.
- The
issues to be determined in the instant case are: (1) what was the purpose of
the exclusionary provision in the roster arrangement;
specifically, did the
arrangement have the subjective purpose of preventing, restricting or limiting
the supply of goods or services;
and (2) are the passengers of taxi-cabs in the
Shepparton area; and passengers and potential passengers of taxi-cabs in the
Shepparton
area in particular circumstances or on particular conditions objects
“on, or about whom” (Rural Press at 84) the relevant purpose
of the exclusionary provisions operated?.
- The
facts here align well with those in Rural Press. The operators of
taxi-cabs provide their services, by and large, to people who live in
Shepparton. The roster-off provision had
as its end the object of limiting or
preventing the supply of taxi-cab services to passengers or potential passengers
in the Shepparton
area. The passengers and potential passengers were the
objects “on, or about whom” the roster-off provision operated.
- It
is clear, in my opinion, that there have been contraventions of s 45(2).
It is appropriate that declarations to that effect
be made substantially in the
terms suggested by the parties.
- The
parties also propose that injunctions issue forbidding the respondents for a
period of three years from engaging in like conduct.
Once again, it is
reasonable that this relief be granted. The period that the injunctions are to
continue is not unreasonable:
compare Australian Competition and Consumer
Commission v IPM Operation and Maintenance Loy Yang Pty Ltd (2006) 157 FCR
162 at [233]-[234].
- It
is also proposed that there be an order that within three months WTT establish a
corporate compliance program designed to ensure
their awareness of their
responsibilities and obligations pursuant to Pt IV of the Code. That has
become a common order and
should be made here.
- As
regards pecuniary penalties what is proposed is that: (1) WTT pay $30,000 in
three equal instalments over a period of three years;
(2) the second, third and
fourth respondents each pay $14,000 in three instalments over a period of three
years; and (3) the fifth
respondent pay $5,000 in three instalments over a
period of three years. It is agreed that in addition to those amounts the
respondents
pay the ACCC’s costs fixed in the sum of $15,000.
- The
maximum pecuniary penalty for a contravention of s 45(2) is
$10 million for a corporation and $500,000 for an individual:
see ss
76(1A) and 76(1B) of the Code.
- The
relevant principles governing the imposition of pecuniary penalties for a
contravention of the Trade Practices Act are discussed in Australian Consumer
and Competition Commission v Dataline.Net.AU Pty Ltd (2007) 161 FCR 513,
527; Trade Practices Commission v CSR Ltd [1991] ATPR 41-076, 52,151-152,
52,154; NW Frozen Foods Pty Ltd v Australian Consumer and Competition
Commission [1996] FCA 1134; (1997) 71 FCR 285, 290-295; J McPhee & Son (Aust) Pty Ltd
v Australian Competition and Consumer Commission [2000] FCA 365; (2000) 172 ALR 532; and
Minister for Industry, Tourism and Resources v Mobil Oil Australia Pty
Ltd [2004] FCAFC 72; [2004] ATPR 41-993, 48,626. These principles should be applied to a
contravention of the Code: see ACCC v Knight [2007] ATPR 42-165,
47,605.
- In
Trade Practices Commission v CSR Ltd [1991] ATPR 41-076, 52,152–3,
French J set out a checklist of factors to which judges have since
frequently referred to when assessing penalties.
They are: (1) the size
of the contravening company; (2) the degree of power it has, as evidenced
by its market share
and ease of entry into the market; (3) the
deliberateness of the contravention and the period over which it extended;
(4) whether
the contravention arose out of the conduct of senior management
or at a lower level; (5) whether the company has a corporate
culture
conducive to compliance with the TPA, as evidenced by educational programs and
disciplinary or other corrective measures
in response to an acknowledged
contravention; and (6) whether
the company has shown a disposition to cooperate with the authorities
responsible for the enforcement of the
TPA in relation to the
contravention.
- General
sentencing principles are also relevant, including specific and general
deterrence as well as the public interest in ensuring
that competition laws are
observed: Trade Practices Commission v Prestige Motors Pty Ltd [1994]
ATPR 41-359, 42,699; see also Trade Practices Commission v Mobil Oil
Australia Ltd [1984] FCA 363; (1984) 4 FCR 296,
297-8.
- The
proposed penalties fall well below those usually imposed for a contravention of
s 45. But while low they are in this case justified for the following
reasons.
- First,
although the roster arrangement limited competition among the operators of
taxi-cabs, which imposed a commercial and personal
burden on each operator, the
arrangement benefited the public to the extent that it ensured the presence of
taxi-cabs available to
supply taxi-cab services in the Shepparton area during
times when WTT predicted that there would be low demand.
- Second,
while the restriction affected taxi-cab operators, the public was not adversely
affected. The nature of the taxi-cab industry
is such that operators of
taxi-cabs are unable to compete in respect of the prices that they may charge
passengers for the supply
of taxi-cab services as those prices are fixed by
conditions attached to the licences applicable to those cabs: see the
Transport Act 1983 (Vic), s 144(2)(d)(i).
- Third,
the roster arrangement was an inherited system that had been in place for many
years. It is an example of the cooperative
environment that defines the
taxi-cab industry. Moreover, all the participants believed what they were doing
was legal. Certainly,
the roster arrangement was well documented and operated
quite openly.
- Fourth,
the respondents have cooperated with the ACCC by making full and frank
disclosure in the s 155 examinations, and acknowledging their liability for
the contravening conduct at an early stage of the action. This has shortened
the proceeding and saved substantial costs.
- Finally,
there is the financial position of each respondent. The amount each individual
earns is quite modest. On top of that the
individuals, mostly family men, have
few assets. It will be difficult for each of them to meet the small penalties
that have been
imposed. So far as WTT is concerned, it is not a large
organisation. Its net profit in the financial year just ended was $7,336.99
on
revenue of $206,224.23. As at 30 June 2008, its net assets are worth
$33,359.51. It also will have difficulty meeting the penalty.
- There
will be orders in accordance with the revised minutes submitted by the
parties.
I certify that the preceding twenty-nine (29)
numbered paragraphs are a true copy of the Reasons for Judgment herein of the
Honourable
Justice Finkelstein.
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Associate:
Dated: 13
February 2009
Counsel for the
Applicant:
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Solicitors for Applicant:
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Corrs Chambers Westgarth
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Counsel for the Respondents:
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Mr M H O’Bryan
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Solicitors for the Respondents:
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Holding Redlich
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URL: http://www.austlii.edu.au/au/cases/cth/FCA/2009/88.html