Forwarders facing 'cartel' charges in New Zealand
Proceedings follow probe into air freight agreements
New Zealand’s Commerce Commission has filed proceedings in the High Court against Kuehne+Nagel, Panalpina and DB Schenker for alleged “anti-competitive conduct".
Proceedings against two other companies have been resolved.
In 2007, the commission began investigating alleged collusion by a number of multi-national air freight forwarding companies with services to New Zealand, following a confidential application for leniency by one of the companies involved.
The commission said: “The anti-competitive conduct relates to alleged agreements about the implementation and application of certain surcharges and fees on air freight forwarding services both to and from New Zealand.
“These agreements are alleged to have had the effect, or likely effect, of controlling or maintaining the price of air freight forwarding services, in breach of the Commerce Act.
“Some of the alleged agreements appeared to have been in place since 2001. Cartel investigations into this conduct are also continuing in Europe and the US.
Prior to filing the proceedings, the Commerce Commission said it had been approached by a number of companies under investigation that wished to engage in settlement negotiations, and it has reached agreement to resolve proceedings in respect of two, EGL and Geologistics International (Bermuda).
“In both instances, the New Zealand subsidiaries (Eagle Global Logistics and Agility Logistics) were not implicated,” said the Commerce Commission.
Kate Morrison, the commission’s General Manager for Enforcement, said: “Agreements between competitors to fix, control or maintain prices distort the normal forces of competition and keep prices artificially high.
“This not only harms downstream businesses, but also consumers who may pay higher prices as a result.”
Proceedings against two other companies have been resolved.
In 2007, the commission began investigating alleged collusion by a number of multi-national air freight forwarding companies with services to New Zealand, following a confidential application for leniency by one of the companies involved.
The commission said: “The anti-competitive conduct relates to alleged agreements about the implementation and application of certain surcharges and fees on air freight forwarding services both to and from New Zealand.
“These agreements are alleged to have had the effect, or likely effect, of controlling or maintaining the price of air freight forwarding services, in breach of the Commerce Act.
“Some of the alleged agreements appeared to have been in place since 2001. Cartel investigations into this conduct are also continuing in Europe and the US.
Prior to filing the proceedings, the Commerce Commission said it had been approached by a number of companies under investigation that wished to engage in settlement negotiations, and it has reached agreement to resolve proceedings in respect of two, EGL and Geologistics International (Bermuda).
“In both instances, the New Zealand subsidiaries (Eagle Global Logistics and Agility Logistics) were not implicated,” said the Commerce Commission.
Kate Morrison, the commission’s General Manager for Enforcement, said: “Agreements between competitors to fix, control or maintain prices distort the normal forces of competition and keep prices artificially high.
“This not only harms downstream businesses, but also consumers who may pay higher prices as a result.”
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