Permanent injunctions to restrain Darwin Radio Taxi Cooperative Limited from making or enforcing anti-competitive agreements, with misusing its market power to hinder or prevent competition, and from attempting to induce its members to make their lessees to operate with Darwin Radio Taxis rather than a rival have been made by the Federal Court.
Justice Von Dousa also declared that the rules amounted to an anti-competitive agreement with its members in breach of the Trade Practices Act 1974. The orders and declarations were made after legal proceedings instituted by the Australian Competition and Consumer Commission.
The main basis of the contraventions was Darwin Radio Taxis' use of its rules to prevent members leaving the cooperative.
Justice Von Dousa also ordered that Darwin Radio Taxis allow current members to leave Darwin Radio taxis without penalty and that it pay the ACCCs legal costs. "The conduct of Darwin Radio Taxis involved serious breaches of the Trade Practices Act resulting in both taxi consumers and taxi plate owners suffering from a lack of effective competition," ACCC Chairman, Professor Allan Fels, said today..
"The Cooperative through its rules and its power in the Darwin taxi market put in place and given effect to, anti-competitive arrangements where members were effectively prevented from leaving Darwin Radio Taxis. This had damaged competition. "Members who tried to leave the Cooperative to join a rival taxi network were threatened with the loss of up to $10,000 they paid for their shares, and also with having to pay base fees to the Cooperative even though they were no longer using its services.
"Darwin Radio Taxis also sought to pressure some of its members, and their lessees, who are now using the services of a rival taxi group, to operate through Darwin Radio Taxis." Professor Fels added that small business people who are the owners of Darwin's taxi plates, now have the choice to leave Darwin Radio Taxis, if they wish.
"Competition between taxi companies should lead to better services, faster response times, cleaner vehicles and, perhaps, lower prices. I hope because of the Courts intervention, that taxi consumers in Darwin can now reap the benefits of such competition".Professor Fels said Darwin Radio Taxis had admitted the contraventions and consent to the orders.
"This has avoided the necessity for a long and costly trial and means that the Darwin office of the ACCC can turn its attention to other matters." In these circumstances and given the substantial cooperation of Darwin Radio Taxis with the ACCC investigation, the ACCC did not seek penalties from the court.
In addition to the orders and declarations, Darwin Radio Taxis has agreed to issue public apologies and undertake a regular trade practices compliance program. The Darwin Radio Taxi case highlighted the urgent need for all cooperatives and other companies to examine their rules to ensure that they do not have anti-competitive purposes or effects. Professor Fels pointed out that the ACCC had recently increased resources in its Darwin office to ensure the right of Northern Territorians to a fair go is protected.
Further information Professor Allan Fels, Chairman, pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (06) 264 2808 Mr Derek Farrell, NT Regional Director, (08) 8943 1499
