Two construction companies and its directors are being accused of "cartel conduct" amid an investigation into alleged bid-rigging for infrastructure projects in Auckland.
Commerce Commission chairman John Small said criminal proceedings were filed in the Auckland District Court today.
It is New Zealand's first criminal prosecution for "cartel conduct".
"Cartel conduct harms consumers through higher prices or reduced quality, and it harms other businesses that are trying to compete fairly," Small said.
"The criminalisation of cartel conduct in 2021 underlines just how serious and harmful this offending is.
"Bid-rigging of publicly funded construction contracts loads extra costs onto taxpayers and the New Zealand economy as conduct of this type undermines fair competition. The commission will not hesitate to bring criminal proceedings in appropriate cases to ensure Kiwis are getting the benefits of fair prices, quality services and more choice."
A cartel is where two or more businesses agree not to compete with each other by price fixing, allocating markets or customers, or restricting the output or acquisition of goods and services, the Commerce Commission said.
Bid-rigging is a form of price fixing and can also involve allocating markets or customers, and can include agreements between some or all of the bidders about who should win a tender, or have an unfair advantage.
Cartel conduct is punishable with a term of imprisonment of up to seven years.
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