The ACCC instituted proceedings against KLM seeking penalties for alleged price fixing between early 2003 and 2006. The alleged contraventions relate to fuel surcharges applied to international carriage of air cargo during that period. The Federal Court in Sydney ordered pecuniary penalties ($6 million in total with Air France) for breaching the price fixing provisions of the Trade Practices Act 1974. The ACCC alleged the airline reached understandings with other international airlines in relation to the imposition of fuel surcharges applied to international carriage of air cargo during that period between early 2003 and 2006. KLM admitted to making and giving effect to illegal price fixing understandings with Lufthansa, repeatedly exchanging assurances with Lufthansa in the implementation of fuel surcharge increases for international carriage of air cargo across their global networks.