Case study 4: Flight centre accused of price fixing

(10 marks)

Visithttps://www.theaustralian.com.au/business/news/accc-to-appeal-over-flight-centre-ruling-on-price-fixing/news-story/b34c781b99af74add12470eaf8954bfb and read the article 'ACCC to appeal over Flight Centre ruling on price fixing'. Then answer the questions that follow.

Weblink

The ACCC defines a range of anti-competitive behaviours on its website, including price fixing; seehttps://www.accc.gov.au/business/anti-competitive-behaviour/cartels/price-fixing.

1. Please define and explain the defining features of the market in which flight centre was operating. You will also have to draw from your course content to answer this question.
2. Explain why did the ACCC bring the charges against Flight Centre?
3. Is there the possibility of non-price competition in this case?
4. Who gained and who lost from the alleged price fixing?