When Is A Global Market A 'Market In Australia' For The Purposes Of The Trade Practices Act?

A recent decision of the Full Court of the Australian Federal Court, Singapore Airlines Ltd v Australian Competition and Consumer Commission [2009] FCAFC 136, is likely to have ramifications for overseas entities conducting business in global markets which include Australia. While technological advances mean that, more than ever before, trade and commerce takes place in global markets, the law frequently struggles to keep pace with such advances. This is nowhere more apparent that when it comes to regulating competition and the behaviour of competitors. Conduct, such as the making and giving effect to price fixing arrangements, when it occurs in Australia, in Australian domestic markets will be a breach of the Trade Practices Act 1974 (Cth) (TPA), but where such conduct occurs overseas in the context of a global market the question of whether it may constitute a breach of the TPA has been less than certain - until the decision in the Singapore Airlines case.

The Singapore Airlines case As is the case in a number of countries, a number of international airlines are being sued in Australia by the competition regulator, the Australian Competition and Consumer Commission (ACCC), for alleged participation in a cartel in the...