ACCC stops karting price fix

The Federal Court has today ordered declarations, injunctions and penalties against the Australian Karting Association (NSW) Inc for price fixing and exclusionary conduct in breach of the Competition Code of NSW.

In June 2009, the ACCC commenced Fast Track proceedings in the Federal Court against the AKA and certain AKA clubs over an agreement they made at the AKA’s 2008 annual general meeting.

At the meeting, the AKA and AKA clubs agreed to fix minimum prices for the hire of their circuits to non-AKA operators, with all hire negotiations to be conducted by the AKA.

By consent, the court today ordered injunctions and declared breaches of the Competition Code as against:

• the AKA, who was also ordered to pay a penalty of $10,000 and implement a trade practices compliance program
• Wagga Kart Club
• Newcastle Kart Club
• Dubbo Kart Club
• Manning Valley Kart Club, and
• AKA officers Mr Richard Erdmann and Mr Simon Whiting for being knowingly concerned in the making of the agreement at the AGM.

"This outcome demonstrates that the ACCC views all forms of price fixing seriously in protecting competition and the public interest," ACCC Acting Chairman Peter Kell said today.

"It also reinforces that all organisations and sporting associations, no matter what size, need to be conscious of their obligations under the Trade Practices Act 1974 and the Competition Code."