$3.65m penalties in NZ’s first two freight forwarding cartel cases
The New Zealand Commerce Commission has imposed penalties of $1.15 million on EGL and $2.5 million on Geologistics, following its investigations into anti-competitive conduct in the freight forwarding market. The High Court in Auckland has endorsed a settlement of proceedings reached between the Commission and Geologistics International (Bermuda), imposing a penalty of $2.5 million and ordering payment of the Commission’s litigation costs of $50,000. Geologistics was found to have contravened the Commerce Act by entering into and giving effect to the Air AMS surcharge agreement together with other freight forwarders. The surcharge related to customs clearance in the United States for goods air freighted between New Zealand and the US. The High Court at Auckland recently approved the resolution reached between the Commission and EGL, ordering EGL to pay a penalty of $1.15 million and the Commission’s litigation costs of $50,000. EGL admitted breaching the Commerce Act by entering into and giving effect to a surcharge agreement (UK NES surcharge) together with other freight forwarders. The surcharge related to security measures at airports for exports from the UK and had the effect of controlling and maintaining prices for the supply of freight forwarding services from the UK to New Zealand. The Commission began an investigation in 2007 into alleged collusion by a number of multi-national companies involved in the supply of international freight forwarding services to the New Zealand market. The Commission hopes to settle proceedings with more parties in the near future. These proceedings should be distinguished from the separate proceedings instituted by the Commerce Commission against a number of airlines for alleged contraventions of Part 2 of the Commerce Act in relation to security and fuel surcharges applied to the international carriage of air cargo in the air cargo industry. Quelle: eyefortransport |