The Commerce Commission has started court action against alleged price fixing in nation-wide animal health remedies markets.

Commission Chairman Peter Allport said that the Commission has filed a Statement of Claim against Eli Lilly & Company (NZ) Limited, and two of its executives, and Chemstock Animal Health Limited, and one of its executives. The allegation concerning Eli Lilly relates to its animal remedies division, Elanco Animal Health. The Commission is alleging that the companies and executives acted illegally and breached the Commerce Act by entering into an anti-competitive price-fixing arrangement.

The Statement of Claim also alleges that on two other occasions Eli Lilly attempted to establish price fixing arrangements with other animal health remedies companies.

Price fixing occurs when competitors collude over prices. It is prohibited by section 30 of the Act.

All the charges relate to events which started in August 1996.

Eli Lilly is based in Auckland and Chemstock is based in Christchurch. The Statement of Claim has been filed on the Commercial List in the Auckland High Court.

Background

Statement of claim

The Commission has filed its proceedings in the Auckland High Court. Under the High Court Rules, the release of this document is a matter for the Court and its officials or for the defendants.

Penalties

The High Court can impose penalties of up to $5 million against an organisation and up to $500,000 against an individual. It can also impose a wide range of orders and injunctions.

Individuals' names

The Commission's legal advice is that the names of the individuals against whom it is taking court action should not be released until they have their first call in court.

Media contact: Commerce Act Manager Jo Bransgrove

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz