Commission files its first criminal cartel charges against two construction companies

This morning the Commerce Commission announced that it has filed criminal charges against two construction companies and two directors for alleged bid rigging of publicly funded construction contracts. This marks New Zealand's first-ever criminal prosecution for cartel conduct, following the introduction of criminal sanctions for cartel conduct in April 2021.
 
According to the Commission's media release, the charges follow a Commerce Commission investigation into allegations that the companies and their directors colluded to rig bids for infrastructure projects in Auckland. Commerce Commission Chair, Dr John Small, said that: "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.”
 
As this is a criminal matter before the Courts, further details were scant, and the Commission said it will not be providing further comment at this time.
 
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