The Australian Competition and Consumer Commission today issued legal proceedings against an Internet café business. Parties proceeded against by the ACCC in relation to an attempted price fixing attempt are Trevor Davis International Pty Ltd, Mans Davis Holdings Pty Ltd, Trevor Davis and Mr Daniel Mans.
The ACCC alleges that Mr Davis on behalf of Idle Gossip Internet Services, by letter dated 22 October 2000, wrote to a nearby rival Internet cafe requesting it to agree upon a minimum hourly rate of $5 for Internet access. The ACCC alleges that the letter indicated that Idle Gossip would begin to compete more aggressively if its rival did not agree to set its public price at $5 per hour.
The ACCC took steps to pursue the matter as soon as it became aware of the letter.
The ACCC is seeking:
- declarations
- pecuniary penalties
- injunctions; and
- findings of fact.
A directions hearing for the matter is listed for 8 December 2000 at 9.30 a.m. at the Federal Court, Melbourne.
Agreements, arrangements or understandings on price between competitors are prohibited by the Trade Practices Act 1974 and the ACCC views attempts at price fixing as extremely serious. Companies may be penalised up to $10,000,000 per offence and individuals up to $500,000.