The Commerce Commission is taking court action against the Ophthalmological Society of New Zealand and five individual ophthalmologists over their alleged anti-competitive collusion which led to the cancellation of cataract operations to be performed in Invercargill by Australian ophthalmologists.

Commission Chairman Dr Alan Bollard said that a Statement of Claim alleging the Society and the ophthalmologists breached the Commerce Act has been filed in the Wellington High Court, and the service of Court documents on defendants has started.

Dr Bollard said that the cancelled operations were to have started in January this year as part of arrangements between the Southern Health CHE and two Australian ophthalmologists.

Late last year Southern Health received extra funding from the government Waiting Times Fund for an additional 225 cataract operations to be performed. It sought to have Australian ophthalmologists perform the operations.

The Commission is alleging that the Society and the New Zealand ophthalmologists involved colluded to ensure that the Australian ophthalmologists did not carry out the additional operations.

It is also alleging that one of the New Zealand ophthalmologists, aided and abetted by others, used his dominant position in a market to prevent the Australian ophthalmologists from carrying out the operations.

Section 27 of the Act prohibits contracts arrangements or understandings that substantially lessen competition. Section 36 of the Act prohibits the use of market dominance for an anti-competitive purpose.

This is the first time since the health sector was deregulated in 1993 that the Commission has taken court action against a medical group.

Background

Statement of claim

The Commission has filed its proceedings in the Wellington High Court. The Commission has no objection to the release of the Statement of Claim, but advises that, under the High Court Rules, the release of this document is a matter for the Court and its officials.

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