The ACCC has issued a draft determination proposing to deny authorisation for
An agreement for coordination between two key competitors may breach competition laws. The ACCC can only authorise these agreements if the public benefits from the coordination outweigh the harm to competition.
"At this stage we are not satisfied that the likely harm to competition from
Currently China Eastern is the only airline flying direct between
"We are concerned that the authorisation would provide
The ACCC considers that demand for air travel between
"Any additional services on routes other than
"A key difference between now and the previous authorisations is we have not been provided with sufficient evidence that the coordination would lead to additional services on other routes between
On
The ACCC is seeking submissions in response to the draft determination by
Further details about the application and how to make a submission are available on the ACCC's public register at
Background
The ACCC previously authorised this alliance in 2015 with conditions and in 2021 without conditions due to the exceptional circumstances related to the COVID-19 pandemic, and its associated effects on travel.
Notes to editors
ACCC authorisation provides statutory protection from court action for conduct that might otherwise raise concerns under the competition provisions of the Competition and Consumer Act (CCA).
Section 91 of the CCA allows the ACCC to grant interim authorisation when it considers it is appropriate. This allows the parties to engage in the proposed conduct while the ACCC is considering the merits of the substantive application.
Broadly, the ACCC may grant authorisation when it is satisfied that the likely public benefit from the conduct outweighs any likely public detriment.
https://www.accc.gov.au
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(C) 2023 M2 COMMUNICATIONS, source