Two courier businesses in New Zealand, Aramex and GoSweetSpot (GSS), have been fined NZ$700,000 and NZ$525,000, respectively, for breaching competition law.
The Commerce Commission launched the investigation before referring it to the High Court. Both companies were penalised for engaging in cartel conduct, which occurs when two or more businesses agree not to compete with each other.
Banned actions constituting cartel conduct include price fixing, market sharing, restricting output, and bid-rigging.
“The courier industry plays a critical strategic role in New Zealand’s economy, given the importance of transport for the movement of goods,” said Commerce Commission chair Dr John Small.
“However, the freight and courier sector has been an area of ongoing concern and focus for us, with the commission taking five court cases in the last 15 years. We expect these penalties and warnings to bring about a change of behaviour in the courier sector.”
The commission said that a further nine courier services businesses will soon be issued warnings for conduct which it believes could constitute cartel conduct in breach of the Commerce Act.
Last year, Aramex admitted to entering into and giving effect to a contractual arrangement that allocated customers and fixed prices between itself and another competitor in the courier services market. The commission added that GSS admitted to entering into and giving effect to contractual arrangements that allocated customers between itself and another competitor in the courier services market.
“Stamping out cartel conduct is an enforcement priority for the commission – this outcome sends a strong message that it will not be tolerated,” Dr Small added.
“Companies engaging in cartel conduct should expect to be on the receiving end of enforcement action.”
The commission and each of the parties agreed to settlements to resolve the proceedings prior to the penalty hearings.
This article was first published on Inside Retail.
