The Commerce Commission has followed the lead of the European Commission and filed charges against a clutch of international freight forwarding companies implicated in a price-fixing cartel.After nearly three years of investigation, the Commerce Commissio
The Commerce Commission has followed the lead of the European Commission and filed charges against a clutch of international freight forwarding companies implicated in a price-fixing cartel.
After nearly three years of investigation, the Commerce Commission has filed proceedings at the High Court in Auckland against six companies for alleged collusion in the supply of international freight forwarding services to New Zealand.
This step mirrors that taken by the European Commission in February following its own investigation.
New Zealand’s investigations began in 2007 following a confidential application for leniency by one of the companies involving in the alleged cartel.
The commission has filed proceedings against Geologistics International, EGL Inc, Panalpinia World Transport, Kuehne + Nagel International, the Brinks Company and Bax Global and a number of companies forming part of the Deutsche Bahn Group providing freight forwarding services under the DB Schenker moniker.
However, the commission has already agreed to resolve the proceedings against EGL and Geologistic International, but the details remain secret until they have been reviewed and endorsed by the High Court.
Commerce Commission enforcement general manager Kate Morrison said agreements between competitors to fix, control or maintain prices keeps prices artificially high.
“This not only harms downstream businesses, but also consumers who may pay higher prices as a result,” she said.
Some of the alleged agreements between the companies have been in place since 2001.
In 2006, the provision of air freight forwarding services to and from New Zealand generated revenue of $450 million.
If found guilty by the court, the Commerce Act allows for individuals to face maximum fines of $500,000 and companies the greater of $10 million, three times the its commercial gain if it can be ascertained or 10% of turnover.
