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International Reach of ACCC Demands for Information/Evidence 17 April 2009

Trade Practices Act s155 allows the ACCC to issue notices requiring the production of documents or the giving of evidence where the ACCC is investigating possible breaches of competition laws.

In an ACCC investigation on whether Emirates Airlines and Singapore Airlines breached these laws the ACCC issued notices on the airlines. The airlines challenged various parts of the notices saying that conduct referred to in the notices did not take place in Australia.

On 2 April 2009 the Federal Court dismissed the airlines' application saying that ACCC notices can be issued in relation to conduct occurring wholly outside Australia if the conduct has effects felt in Australia.

The ACCC has indicated a focus on investigating the transport and logistics industry. Participants in that industry (which by definition is international) must be aware that ACCC production notices can issue in relation to conduct that takes place outside of Australia provided it can be shown that the effect of such conduct is felt, or could be felt, in Australia. Given the apparent wide definition of "market in Australia" taken by the Federal Court, businesses must take note of the international reach of the ACCC's investigatory powers.

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