The Australian Competition and Consumer Commission is disappointed by today's Federal Court decision on allegations of price fixing in the Geelong petrol market in 1999-2000.
"This case was unusual in that it covered many allegations over a long time period," ACCC Chairman, Mr Graeme Samuel, said.
The ACCC originally instituted proceedings against 18 respondents alleging that they fixed the retail price of petrol in the Geelong area, in contravention of the Trade Practices Act 1974. A number of respondents made admissions prior to the trial and some did not contest the allegations.
"There was no dispute by many of the respondents in the Geelong proceedings that they communicated about petrol prices. What was disputed in court was whether those communications amounted to an 'arrangement or understanding' being reached between the parties as to how they would price their petrol.
"The decision highlights the difficulty of witnesses' exact recall to events of some years previously," Mr Samuel, said. "Witnesses were required to give exact rendition of events, conversations and their effect on prices.
"The ACCC recognises the difficulties proving such cases and also the challenges faced when presenting circumstantial evidence based on large data sets. This case turned on the Federal Court's interpretation of facts and evidence as presented.
"While disappointed with the outcome, today's judgment will not deter the ACCC from investigating allegations of price collusion in the petrol and related markets.
"The ACCC must take cases which it believes are in the public interest and which have a reasonable basis for success. The case followed the ACCC's successful prosecution of similar price fixing allegations in the Ballarat region which resulted in penalties of more than $20 million.
"In the Geelong case, the court has not found in the ACCC's favour."