The Australian Competition and Consumer Commission has reminded regional taxi companies not to engage in anti-competitive practices after Dubbo Radio Cabs Co-operative Limited provided the ACCC with a court-enforceable undertaking to cease various anti-competitive practices.
The ACCC considered that a Dubbo Radio Cabs system for allocating jobs in excess of 20 kilometres on a value basis in numerical order, least amount first; and its ban on drivers using mobile phones were in breach of the Trade Practices Act 1974.
Additionally, there were various other rules which concerned the ACCC and Dubbo deleted these rules from its rules and by-laws.
Dubbo 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 value based system for allocating jobs in excess of 20 kilometres
- instruct a solicitor or suitably qualified person to review the rules and by-laws and remove all paragraphs that may be anti-competitive, and
- 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 Chairman, Mr Graeme Samuel, 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".