Taxi companies have been reminded not to engage in anticompetitive practices by the Australian Competition and Consumer Commission.
The warning follows ACCC action which saw Lismore Taxis Co-Operative Ltd provide a court enforceable undertaking over by-laws which the ACCC believes were in breach of the Trade Practices Act 1974. The ACCC was particularly concerned with the radio network's ban on privately arranged taxi bookings, the points system it used to distribute out of town trips amongst drivers, and the roster system which rationed work time available to drivers.
ACCC Chairman, Professor Allan Fels, commended Lismore Taxis' swift action in revising its by-laws to ensure any anti-competitive practices were stamped out. Lismore Taxis has provided an undertaking to the ACCC that:
- no taxi operator will be penalised for making a private booking;
- it will not introduce any system which prevents taxi cabs from competing for out of town jobs;
- it will not introduce a roster system which keep cabs off the road at any particular time; and
- it will introduce a trade practices compliance program to help it comply with the Act in the future.
'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,' he said. '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. 'Taxi consumers, including consumers in regional areas, should reap the benefits of this competition.'