The Commerce Commission is taking court action against Christchurch Transport Limited (CTL) and one of its executives for alleged anti-competitive behaviour in the Christchurch bus market.

Commission Chairman Peter Allport said that a Statement of Claim alleging CTL and the executive breached the Commerce Act has been filed in the Christchurch High Court.

Mr Allport said that the Commission is alleging that CTL tried to set up illegal price fixing and market sharing arrangements among transport companies who were tendering for Canterbury Regional Council contracts.

Price fixing occurs when competitiors collude over prices. Market sharing occurs when competitors collude over which parts of a market they will be involved in.

The Commissions action is under sections 27 and 30 of the Act. Section 27 prohibits contracts arrangements or understandings that substantially lessen competition. Section 30 prohibits fixing or controlling of prices.

Background

Statement of claim

The Commission has filed its proceedings in the Christchurch 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