The court heard “a lack of care with template documentation” was at play, and in this case, Aramex was the larger party and responsible for drafting the contract.
The smaller company was a reseller and just had to sign what was presented to it.
Cuncannon said an Aramex national sales manager, rather than an owner or director, was responsible for the contract in question.
Cuncannon said Aramex had co-operated with the investigation.
The offence happened in 2021.
The Aramex case was far less serious than some other local cartel cases but still had the potential to cause adverse economic impacts, Cuncannon added.
“Courier services are obviously important to the New Zealand economy.”
She said the worst type of cartel behaviour involved price-fixing of the type seen in a smoke-filled room where competitors secretly colluded.
“Some of these cartels go to quite extreme lengths to avoid detection.”
The court heard Aramex now had a compliant arrangement with the competitor in question.
Aramex admitted guilt early in the case.
Defence counsel Jennifer Hambleton said a senior Aramex leader attended court to demonstrate how contrite the company was.
“Aramex was genuinely unaware that it was in competition with its reseller,” she added.
She said Aramex gave a full, frank and voluntary response to all questions from the commission.
“It made its employees available for interview … without having to be compelled.”
Justice Tracey Walker reserved her decision on Thursday.
But today, the commission said Justice Walker had decided on a $700,000 fine for Aramex.
In a separate case, GoSweetSpot (GSS) admitted entering into and giving effect to contractual arrangements that allocated customers between itself and a competitor.
The commission described GSS as a reseller brokering courier transport services to customers.
It was penalised $525,000.
The commission said a further nine courier services businesses would soon be issued warnings for suspected cartel conduct in breach of the Commerce Act.
In a cartel, businesses agreed not to compete with each other and engaged in tactics such as price-fixing, allocating markets, or bid-rigging.
Commerce Commission chair Dr John Small said the freight and courier sector had been an area of ongoing concern and focus for the regulator.
“Stamping out cartel conduct is an enforcement priority for the commission. This outcome sends a strong message that it will not be tolerated,” he said.
“We expect these penalties and warnings to bring about a change of behaviour in the courier sector.”
John Weekes is a business journalist covering aviation and court. He has previously covered consumer affairs, crime, politics and courts.
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