Australia’s competition regulator, the Australian Competition and Consumer Commission (ACCC), has intensified its legal action against Qantas Airways, announcing plans to seek a hefty fine of “hundreds of millions” of dollars. This move comes a day after the ACCC initiated legal proceedings against the carrier, accusing it of selling tickets to over 8,000 flights despite their cancellation.
In court filings on Thursday, the ACCC alleged that between May and July 2022 Qantas violated consumer law by failing to disclose the cancellation status of thousands of flights. Qantas, in response, stated it would carefully review the allegations and provide a formal response in court. The airline emphasized that the period in question coincided with unprecedented challenges faced by the entire airline industry due to the global pandemic.
Read more: The ACCC’s Ongoing Digital Platforms Services Inquiry: Regulatory Reform
The ACCC’s Chair, Gina Cass-Gottlieb, reiterated the severity of the alleged misconduct, emphasizing that the proposed penalty is not merely a cost of doing business but aims to deter similar conduct in the future. Under Australian consumer laws, Qantas could face a maximum penalty of up to 10% of its annual turnover, which stood at A$19.8 billion in the fiscal year ending June.
Qantas shares experienced a notable decline, dropping nearly 2% to A$5.83 in afternoon trading on Friday. This followed a previous day’s dip of 3.81%, marking the lowest share price since November 22.
Cass-Gottlieb highlighted the intention to surpass the previous record penalty imposed on automaker Volkswagen in 2019, which amounted to A$125 million ($81 million) for breaching Australian consumer laws.
Source: CA Movies Yahoo
Featured News
CVS Health Explores Potential Breakup Amid Investor Pressure: Report
Oct 3, 2024 by
CPI
DirecTV Acquires Dish TV, Creating 20 Million-Subscriber Powerhouse
Oct 3, 2024 by
CPI
South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices
Oct 3, 2024 by
CPI
Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs
Oct 3, 2024 by
CPI
Attorney Challenges NCAA’s $2.78 Billion Settlement in Landmark Antitrust Cases
Oct 3, 2024 by
nhoch@pymnts.com
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh