The Commerce Commission has joined competition regulators in four other countries in a crackdown on possible cartel behaviour in global supply chains.
The Commerce Commission says it has "zero-tolerance" for businesses using Covid-19 as an opportunity for cartel conduct. Photo: 123rf
The commission is working with relevant authorities in Australia, Canada, UK, and the US, through sharing intelligence and other means to detect and investigate potential cartel conduct taking place during the pandemic-related disruption.
"We recognise that Covid-related supply chain issues have created significant challenges for economies worldwide, and here in New Zealand we've seen businesses respond by cooperating responsibly to ensure New Zealanders continue to be supplied with essential goods and services," Commerce Commission chair Anna Rawlings said.
"However, we still have zero-tolerance for unscrupulous businesses using Covid as an opportunity for cartel conduct, such as non-essential collusion between competitors or anti-competitive behaviour."
She said the international working group aimed to strengthen efforts to deter and penalise cartel conduct.
Cartels are groups of companies or individuals working together to manipulate or dominate markets or industries through such tactics as price rigging, allocating markets or customers, or restricting the output of goods or services.
It has been a criminal offence since last year in New Zealand, but the commission has the power to treat whistle blowers with leniency.
Last December, the Commerce Commission filed civil proceedings in the High Court against Mondiale Freight Services, Oceanbridge Shipping, and four individuals associated with the companies for agreeing with competing freight forwarders not to compete for their customers, which took place before the pandemic.
It reached a settlement with the freight forwarders and agreed penalties, which have yet to be disclosed.
The Commerce Commission was also part of a global investigation and prosecution of airlines in 2008 for cartel behaviour in the air cargo market.