The intersection between agency and competition law: What are the implications of the High Court's decision in Australian Competition and Consumer Commission v Flight Centre Travel Group Ltd?

The decision of the High Court in Australian Competition and Consumer Commission v Flight Centre Travel Group Ltd has redefined the way in which Australia's competition law applies to bona fide agency relationships in circumstances where both the principal and its agent offer goods or services to the public. In so doing, the Court has treated as an attempt at price fixing dealings between a principal and a sales agent which are analogous to other types of distribution arrangements that are traditionally characterised as 'vertical'. We contend that the Competition and Consumer Act should not strictly prohibit such arrangements, but rather deem them illegal only where they have the purpose, or are likely to have the effect, of substantially lessening competition. This would align more closely with the approach taken in assessing vertical restraints, under both the Australian Act and the law in other jurisdictions. [ABSTRACT FROM AUTHOR]