Commerce Commission welcomes guilty plea in New Zealand cartel bid rigging case

NZ Herald

19 Sep, 2024 05:06 AM2 mins to read

The High Court in Auckland today heard guilty pleas in New Zealand first-ever criminal prosecution of cartels.

One half of the defendants in New Zealand’s first criminal prosecution of cartel conduct have pleaded guilty.

In December the Commerce Commission filed charges against two construction companies, and two directors of those companies, for alleged rigging bids for publicly funded projects.

The defendants have ongoing interim name suppression.

The Herald understands the defendants are subcontractors who had been involved in Auckland Council-linked infrastructure projects.

Earlier today at the High Court in Auckland guilty pleas were entered by one company and its director.

The development was welcomed by Commerce Commission chairman John Small.

“We are pleased that the defendant has acknowledged his offending and pleaded guilty,” he said.

Small noted the case would continue against the other defendant and company, who have both pleaded not guilty.

A trial date has been set for October 2025, with proceedings expected to last three weeks.

Cartel conduct was made a criminal offence in 2021 and convictions carry a potential maximum term of imprisonment of seven years.

Discover more

Small said the case was an important plank in the commission’s mission to enforce the law.

“The criminal proceedings send a strong message to businesses that the commission will not tolerate cartel conduct, and we are prepared to lay criminal charges to enforce the law,” he said.

“Cartel conduct harms consumers through higher prices or reduced quality, and it harms other businesses that are trying to compete fairly. The criminalisation of cartel conduct in 2021 underlines just how serious and harmful this offending is.

“Bid rigging of publicly funded contracts loads extra costs onto taxpayers and the New Zealand economy as conduct of this type undermines fair competition. The commission will not hesitate to bring criminal proceedings in appropriate cases to ensure Kiwis are getting the benefits of fair prices, quality services and more choice,” Small said.