The Australian Competition and Consumer Commission issued legal proceedings against Trevor Davis in November last year, after he wrote to a nearby rival Internet café requesting it to agree upon a minimum hourly rate of AU$5 for Internet access.
The letter threatened that Idle Gossip would begin to compete more aggressively if its rival did not agree to set its price, according to the ACCC.
"This case demonstrates that the ACCC will take immediate action to protect small business from illegal threats", ACCC Chairman, Professor Allan Fels, said in a statement.
"Businesses need to realise that no matter what their size, they need to comply with the law. Price fixing is an extremely serious matter and the ACCC will pursue not only corporations but also individuals who engage in such conduct".
Price fixing is prohibited by the Trade Practices Act 1974 and companies can be penalised up to AU$10 million per offence and individuals up to AU$500,000.
In deciding on the AU$5000 fine, the Court said it had taken into account Davis' poor health and the fact that he had shown remorse and admitted the conduct.
