Sharechat Logo

TransPacific unit settles in price-fixing case

Friday 5th November 2010

Text too small?

ERS New Zealand, New Zealand’s largest provider of waste oil services and a unit of TransPacific Industries, has paid a “significant sum” in a settlement to head off a price-fixing prosecution.

The Commerce Commission agreed to withdraw High Court proceedings lodged in 2009 after a whistleblower gave the regulator a secret recording of a meeting where one of ERS’ directors discussed future price rises with a rival. The commission pursued the case after a whistleblower provided a secret recording of the conversation.

ERS NZ will pay a significant sum to the commission towards the investigation’s costs, and will ensure directors and senior executives undertake competition law compliance training.

“Price fixing harms the competitive process, potentially resulting in customers paying higher prices,” said Commission general manager of enforcement, Kate Morrison. “We have taken into account that the company recognises the imprudence of the alleged price-fixing attempt, has undertaken to improve compliance training, and has made payment towards our investigation costs.”

Morrison praised the whistleblower for not agreeing to the price-fixing attempt and approaching the Commission.

The Ministry of Economic Development is reviewing the government’s approach to price collusion, and is considering criminalising cartels.

Had the commission proceeded with its case, ERS faced a fine of up to $10 million for the company, plus a maximum of $500,000 for individuals involved.

 

Businesswire.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

VCT - Operational performance for the year ended 30 June 2024
Challenge to banks the way to go
Bigger returns or lower risk?
NPH - Director Appointment
July 19th Morning Report
Wellington International Airport Ltd (“WIA040”) - Maturity
Devon Funds Morning Note - 18 July 2024
CNU - Commerce Commission releases draft Price Quality decision
Precinct FY24 Annual Results and Webcast Details
Scott Technology appoints new CEO