Latest news with #CommerceAct
Scoop
a day ago
- Business
- Scoop
ComCom Finds No Evidence Of Cartel Behaviour In Banks' Involvement In Net-Zero Banking Alliance
The Commerce Commission has investigated and found no evidence to support a complaint from Federated Farmers of New Zealand (Federated Farmers) alleging potentially anti-competitive, coordinated, cartel-like behaviour involving five major banks in New Zealand associated with the Net-Zero Banking Alliance. The banks involved are ANZ Bank New Zealand Limited (ANZ), ASB Bank Limited (ASB), Bank of New Zealand (BNZ), Rabobank New Zealand Limited (Rabobank), and Westpac New Zealand Limited (Westpac). These banks collectively account for around 97% of New Zealand's agricultural lending market. Commerce Commission General Manager Competition, Fair Trading and Credit Vanessa Horne says the complaint, received last December, alleged the banks were coordinating their agricultural lending policies to align with Net-Zero Banking Alliance strategies and targets. It alleged that, in doing so, the banks were potentially acting anti-competitively, in breach of the Commerce Act. The complaint also raised concerns that this alleged coordination could reduce farmers' access to capital, resulting in higher borrowing costs and stricter lending terms. 'We know New Zealanders are very focused on the work being done by the Commission (and others) to ensure banks are acting fairly - and farmers are no different,' says Ms Horne. 'If we see activity that falls foul of the laws we enforce, we will not hesitate to act. In this case, however, we thoroughly investigated the complaint and concluded that the banks had made their own, independent decisions. We found no evidence of unlawful coordination between the banks or with the Net-Zero Banking Alliance, either relating to the banks joining or in meeting their obligations under this alliance.' On that basis, the Commission says, it will be taking no further action. The Commission is keenly aware that, in many sectors, New Zealand businesses are working hard to develop and deliver sustainability initiatives together. New Zealand's competition laws can accommodate such collaboration - to help businesses, the Commission has developed Collaboration and Sustainability Guidelines that can be found on its website. Background The Net-Zero Banking Alliance The Net-Zero Banking Alliance is a United Nations (UN) convened initiative, supporting banks to lead on climate mitigation in line with the goals of the Paris Agreement. It was co-launched on 21 April 2021 by the United Nations Environment Programme (UNEP) Financial Initiative and the Prince of Wales Sustainable Markets Initiative Financial Services Taskforce, with 43 initial banks as signatories. Joining the Net-Zero Banking Alliance is entirely voluntary, and any signatory may join or withdraw at any time. Banks that choose to become signatories to this alliance make a public statement of an intention to align the greenhouse gas emissions from their lending and investment portfolios with net-zero pathways by 2050 or earlier. The Net-Zero Banking Alliance does not prescribe targets that signatories should set. Instead, it provides signatories with a framework for target setting, resources, global expertise, and tools to help them individually assess the emissions within their portfolios and understand ways that the shift of capital towards low-carbon activity might be accelerated.
NZ Herald
6 days ago
- Business
- NZ Herald
Commerce Commission chairman John Small defends LinkedIn post about Uber
Commerce Commission chairman John Small has defended social media posts in which he called for consumers to reconsider using Uber and instead recommended rival rideshare services. The commission regulates competition and fair trading laws in New Zealand and ensures businesses comply with the Commerce Act, which prohibits anti-competitive behaviour. Small
Scoop
14-07-2025
- Business
- Scoop
Commerce Commission To File Proceedings Against Foodstuffs North Island And Gilmours, Alleging Cartel Conduct
The Commerce Commission will shortly file civil proceedings against Foodstuffs North Island Limited (FSNI) and Gilmours Wholesale Limited (Gilmours) for alleged cartel conduct (market allocation) in breach of the Commerce Act, and alleged breaches of the Grocery Industry Competition Act (GICA). The Commission investigated agreements that FSNI and Gilmours entered into with a national grocery supplier regarding the supply of products to a hospitality customer. The supplier and the customer both have considerable volumes of business with FSNI/Gilmours. When FSNI/Gilmours discovered the supplier and customer had established a direct trading relationship, they persuaded the supplier to re-route that business through them. Commerce Commission Chair, Dr John Small, says the Commission believes FSNI and Gilmours engaged in cartel conduct which is a breach of section 30 of the Commerce Act. 'We take allegations of cartel conduct very seriously. Cartel conduct harms consumers through higher prices or reduced quality, and it harms other businesses that are trying to compete fairly,' Dr Small says. 'In this instance, the supplier wanted to provide a competitive supply channel, but this was stopped by the agreement with FSNI and Gilmours. 'We do not tolerate this kind of behaviour and will not hesitate to take court action, where appropriate,' Dr Small says. The Commission is also filing proceedings against FSNI and Gilmours under GICA. The Commission believes FSNI and Gilmours obstructed the supplier's ability to sell groceries to the customer in question, and did not deal with the supplier in good faith. Grocery Commissioner, Pierre van Heerden, says this behaviour could be in breach of the Grocery Supply Code. 'The Grocery Supply Code was introduced to address the power imbalance between the major supermarkets and their suppliers,' Mr van Heerden says. 'The major supermarkets are the largest customers for most grocery suppliers. This creates a reluctance for suppliers to call out bad behaviour or push back on the supermarkets for fear of damaging relationships or losing access to supermarket shelves. 'The Commission is acutely aware of the risk suppliers may face coming forward and has ways to protect their identity and business. We have anonymous reporting tools for cartels and GICA and encourage anyone concerned to use these ways of contacting us,' Mr van Heerden says. As this matter will soon be before the Court, the Commission will not be providing further comment on the case at this time. Background Cartel conduct A cartel is where two or more businesses agree not to compete with each other. Cartel conduct can take many forms, including price fixing, allocating customers, rigging bids or restricting the output of goods and services. Because cartels can harm the interests of consumers - goods and services become more expensive, consumers end up with fewer choices, and quality and service levels are likely to deteriorate – tackling cartels is one of the Commission's key enforcement priorities. Grocery Supply Code New Zealand's mandatory Grocery Supply Code was introduced under the Grocery Industry Competition Act 2023. The Supply Code was created to increase transparency and certainty for suppliers through a set of rules supermarkets need to follow when dealing with suppliers. Bringing increased certainty to agreements between supermarkets and suppliers is intended to give suppliers more confidence to innovate and invest in more choice for consumers.
Scoop
15-05-2025
- Business
- Scoop
Possible Cartel Conduct Sparks Compliance Advice
Press Release – Commerce Commission Trade associations, professional bodies and their members should be aware they could be held liable under the Commerce Act if conduct is shown to be anti-competitive. Penalties for breaching the Commerce Act can be severe, including potential imprisonment. The Commerce Commission is reminding trade organisations and members of their obligations under the Commerce Act after issuing a compliance advice letter to NZ Trade Group (NZTG) about conduct that had the potential to harm competition. Vanessa Horne, General Manager Competition, Fair Trading and Credit said the Commission had investigated allegations of anti-competitive conduct by the membership group, which describes itself as the country's leading network of electricians. 'There were two principal areas of concern. The first related to the group's terms and conditions which contained a non-solicitation clause explicitly prohibiting members from actively soliciting other members' customers, employees and contractors. 'The second related to the NZTG's private Facebook group. Several posts included discussions about rates, with members in some cases appearing to agree to price-match. 'In both cases, the conduct raised issues under section 30 of the Act which prohibits any person entering into a contract or arrangement, or arriving at an understanding, that contains a cartel provision.' As a result of the concerns raised by the Commission, NZTG has amended the terms and conditions of membership and included a permanent banner on its Facebook group, warning against discussion and conduct that could be considered anti-competitive. Ms Horne said while prompt NZTG action had concluded the investigation in this case, membership organisations should take this as an opportunity to review their own practices. 'Trade associations, professional bodies and their members should be aware they could be held liable under the Commerce Act if conduct is shown to be anti-competitive. Penalties for breaching the Commerce Act can be severe, including potential imprisonment.' A copy of the compliance advice letter is available on the Commission's case register.
NZ Herald
15-05-2025
- Business
- NZ Herald
‘Possible cartel conduct': Sparky association changes policy after anti-competition accusation
And its private Facebook group had featured posts from members discussing rates, with some 'appearing to agree to price-match', the Commerce Commission said. 'In both cases, the conduct raised issues under section 30 of the [Commerce] Act, which prohibits any person entering into a contract or arrangement, or arriving at an understanding, that contains a cartel provision,' the Commerce Commission's Vanessa Horne said. The commission then issued NZTG with a compliance advice letter. Horne, the general manager of competition, fair trading and credit, said NZTG had made changes as a result of the investigation. It had changed its terms and conditions for members and had placed a permanent banner on its Facebook group warning members against discussion and conduct that could be considered anti-competitive. NZTG's remedies had concluded the commission's investigation, she said, adding that other organisations should learn from this. 'Trade associations, professional bodies and their members should be aware they could be held liable under the Commerce Act if conduct is shown to be anti-competitive. Penalties for breaching the Commerce Act can be severe, including potential imprisonment.'
