The High Court has fined two freight forwarders a total of $9.7 million for engaging in cartel conduct.
Photo: AFP
The Commerce Commission brought the proceedings against Mondiale Freight Services and Oceanbridge Shipping for entering into arrangements with competitors to not vie for customers.
The two companies were in separate cartels that were reached prior to the pandemic.
"These cartel arrangements had the effect of removing competition, making it possible that customers were charged more by counterparties for retail freight forwarding services than they would have been if Oceanbridge and Mondiale had actively competed for those customers," commission chair Anna Rawlings said.
The High Court acknowledged that the conduct arose from practical concerns held by Mondiale and Oceanbridge about providing wholesale freight forwarding services to other freight forwarders while also being their competitors.
However, it determined the behaviour was a serious breach of the law.
Mondiale was ordered to pay $4.9m, while Oceanbridge would have to $4.6m.
Four individuals associated with the companies also received penalties ranging from $65,000 to $100,000.
"The liability attaching to these cartel arrangements demonstrates the risks that can arise when businesses who supply their competitors aren't careful to manage those relationships in a lawful way," Rawlings said.
She said it was more important than ever that businesses make sure they understood how to stay on the right side of the law.