The Commerce Commission intends to file legal proceedings against Fletcher Building subsidiary Winstone Wallboards. Photo: RNZ / Alexander Robertson
- The regulator is prosecuting a Fletcher Building subsidiary over rebates
- It says now discontinued customer rebates for wall boards were anti-competitive
- Fletcher Building says IT will "vigourously defend" the case
The Commerce Commission intends to file legal proceedings against Fletcher Building subsidiary Winstone Wallboards following an investigation into the use of customer rebates.
The commission considered Winstone Wallboards' use of the volume rebates, which were discontinued by the company in 2022, breached the Commerce Act.
In a market statement, Fletcher said it would vigorously defend itself against the commission's charges, which were expected to be filed by the end of October.
"We disagree with the commission's conclusion, given that, during the recent building products market study, merchants told the commission that the rebate structures were not a factor that inhibited competition," Fletcher said.
"As we submitted during that process, these rebates are common within the building products industry and are simply one aspect of competing. The commission itself acknowledged that volume rebates were widespread."
In addition, Fletcher said the commission comprehensively investigated Winstone Wallboards on the rebate topic in 2014, and concluded Winstone's market share "was driven by its attractive overall product and service offering, not the rebates, and that the evidence did not support a conclusion the rebates breached the Commerce Act".
The Commerce Commission issued a brief statement and declined an interview.
"We've notified Winstone Wallboards Limited (a subsidiary of Fletcher Building Limited) of our intent to bring civil proceedings for alleged anticompetitive conduct under the Commerce Act.
"This follows an investigation into Winstone Wallboards' use of retroactive tiered rebates in its supply of plasterboard between 1 January 2017 and 31 December 2022."
The commission said it expected to file the action before the end of the year.