The alleged cartel supplied gas insulated switchgear (GIS), which is used to control the flow of electricity in substations. The allegations are against French companies Alstom and Schneider Electric Industries, and German company Siemens.
The commission filed a complaint with the high court on April 20, 2007, which alleges that, between 1988 and 2004, the companies gave effect and conspired to give effect in New Zealand to a global cartel for the supply of GIS.
In a press release, the commission revealed that, earlier this year, the European competition regulator fined the defendants and other companies over E750 million for conduct based on the same cartel agreement.
The Commerce Commission is claiming that the defendants implemented the price-fixing and bid-rigging cartel through their wholly-owned subsidiaries in New Zealand. As the utilities are overseas, however, the commission had to gain permission from the high court to serve the proceedings abroad.
While GIS technology is not widely used in New Zealand, these companies are major players in New Zealand electricity markets, supplying a wide range of products and services, commented Commerce Commission chair Paula Rebstock.
Ms Rebstock concluded: These proceedings send a clear message that commission will act to protect the competitiveness of New Zealand markets from illegal interference by cartels, whether domestic or foreign.
The commission said that its investigations were triggered by an application for leniency from one of the participants in the alleged cartel. The commission’s leniency policy allows immunity from commission-initiated proceedings to the first person involved in a cartel to come forward with information.
