ComCom and Rural Livestock reach settlement over price fixing allegations; court action continues against others
The settlement reached between the pair will be ruled on at a penalty hearing in the Auckland High Court.
The Commerce Commission has reached a settlement with Rural Livestock after filing legal action against the second-largest livestock agency in the South Island, for alleged price fixing in relation to the introduction of the National Animal Identification Tracing Act 2012.
The commission alleges Rural Livestock and other livestock companies breached the Commerce Act by establishing three pricing agreements before the NAIT Act came into force in July 2012. The pricing agreements alleged include fixing the price of tagging cattle at sale yards, increasing yard fee charges, and increasing stock and station agent charges by introducing an administration fee for NAIT-related costs.
The settlement reached between the pair will be ruled on at a penalty hearing in the Auckland High Court, which is due to be scheduled shortly. Until the end of that hearing, the commission says it can't comment further.
Penalties for price fixing include the greater of a $10 million fine, or three times the commercial gain or 10% of the company's turnover if the gain can't be easily established.
Court proceedings making similar allegations against PGG Wrightson, Elders NZ, and five individuals who are current or former employees of the two companies, were filed in the High Court at Auckland in August. Settlements have not been reached in those cases, which remain before the courts.
(BusinessDesk)
Fiona Rotherham
Thu, 05 Nov 2015
Thu, 05 Nov 2015
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ComCom and Rural Livestock reach settlement over price fixing allegations; court action continues against others
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