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RealTime IT News

iCafes Caught Red Handed In Price Fixing Scam

[Sydney, AUSTRALIA] The Australian Competition and Consumer Commission has issued legal proceedings against an Internet cafi business which it has accused of price fixing.

According to the ACCC, Trevor Davis International Pty Ltd, Mans Davis Holdings Pty Ltd, Mr. Trevor Davis and Mr. Daniel Mans were involved in the attempted fix on behalf of Idle Gossip Internet Services.

The ACCC alleged that Davis, on behalf of Idle Gossip Internet Services, wrote a letter to a nearby rival Internet cafe asking it to agree upon a minimum hourly rate of $5 for Internet access in late October.

The letter contained threats, according to the ACCC, that Idle Gossip would begin to "compete more aggressively" if its rival did not agree to set its public price at $5 per hour.

The ACCC said it took steps to pursue the matter as soon as it became aware of the letter and is now seeking declarations; pecuniary penalties; injunctions and findings of fact.

A hearing will be held on December 8, 2000 at the Federal Court, Melbourne. Companies found guilty of price fixing may be penalized up to $10,000,000 per offence and individuals up to $500,000.

Neither party was available for comment.