The Australian Competition and Consumer Commission has reminded taxi companies not to engage in anti-competitive practices after Tamworth Radio Cabs Co-operative Limited provided the ACCC with a court-enforceable undertaking to cease various such practices.
The ACCC considered that a points system which shared jobs in excess of 30 kilometres between drivers; Tamworth Radio Cab's ban on drivers accepting private or direct bookings; and restrictions on where drivers could buy fuel were in breach of the Trade Practices Act 1974.
Tamworth Radio Cabs Co-Operative Limited has ceased the conduct and provided an undertaking to the ACCC that it will:
- notify all taxi operators of the termination of the points system
- hold a meeting to amend its rules and by-laws in relation to private bookings and fuel supply and notify all operators of the rescission of those rules
- instruct a solicitor to review the rules and by-laws and remove all paragraphs that may be anti-competitive
- develop a trade practices compliance program.
"This undertaking reinforces the need for radio network providers in regional areas to check that their rules and by-laws are not in breach of the Trade Practices Act", ACCC Commissioner, Mr John Martin, warned today. "Radio network providers who are the sole providers of radio services in a particular region should be aware that if they prevent taxi drivers from engaging in competitive conduct they also may be illegally misusing their market power.
"Taxi operators are an important part of the small business community and they are entitled to reward for vigorous competition, including competition to provide a timely, clean and efficient taxi service to consumers".