[1] In June 2009, the ACCC began proceedings in the Federal Court against Cabcharge alleging that it had breached section 46 of the Commonwealth Trade Practices Act (TPA) by misusing its market power and entering into an agreement to substantially lessen competition.

The company holds a dominant market position in these services across Australia as it supplies almost 97% of Australian taxis with its electronic payment system.

The ACCC action alleged that Cabcharge had breached section 46 of the Trade Practices Act (TPA) by misusing its market power and entering into an agreement to substantially lessen competition.

For example, in September 2007, a sub-section 46(1AA) was introduced into the TPA to prohibit corporations with substantial market share from engaging in predatory pricing.

Civil penalties can now be imposed up to the greater of $10 million, three times the value of the benefit obtained from the misconduct, or 10% of the annual Australian turnover of the company involved.

It was found that: "With respect to both refusals, Cabcharge acknowledges that although there would have been time and costs involved in developing appropriate interfaces, there was no technical reason that would prevent any electronic taxi-specific payment product from being processed by any EFTPOS terminal as long as that taxi-specific instrument and the relevant EFTPOS terminals complied with all relevant banking/financial industry protocols, including security protocols."