An investigation by the Commerce Commission has resulted in courier companies Aramex and GoSweetSpot (GSS) being penalised $700,000 and $525,000, respectively, by the High Court for engaging in cartel conduct.
Additonally, nine courier services businesses will soon be issued warnings for conduct the Commission believes likely constitutes cartel conduct in breach of the Commerce Act.
The penalties against Aramex and GSS follow separate hearings at the Auckland High Court. The two companies did not enter into the agreements containing cartel provisions with each other.
“The courier industry plays a critical strategic role in New Zealand’s economy, given the importance of transport for the movement of goods,” Commerce Commission Chair Dr John Small says.
“However, the freight and courier sector has been an area of ongoing concern and focus for us, with the Commission taking five court cases in the last 15 years.
“We expect these penalties and warnings to bring about a change of behaviour in the courier sector.”
Last year, Aramex admitted to entering into and giving effect to a contractual arrangement that allocated customers and fixed prices between itself and another competitor in the courier services market.
Separately, GSS admitted to entering into and giving effect to contractual arrangements that allocated customers between itself and another competitor in the courier services market.
Dr Small says it is vital the courier sector remains highly competitive and free of these behind-closed-doors agreements, which ultimately hurt Kiwi consumers.
“Stamping out cartel conduct is an enforcement priority for the Commission – this outcome sends a strong message that it will not be tolerated,” he says.
“Companies engaging in cartel conduct should expect to be on the receiving end of enforcement action.”
Aramex is a carrier that provides courier transportation services to customers, while GSS is a reseller that brokers courier transportation services to customers.
Both contractual arrangements at issue here were negotiated in the context of reseller/carrier arrangements.
The Commission and each of the parties agreed settlements to resolve the proceedings prior to the penalty hearings.
The Commission is unable to make further comment on the warnings at this time. Further information will be available on the case register in due course.
Image credit: Getty Images
What a fkn surprise huh? Aramex the “eco-friendly” global warming champions of wokeness with the dodgiest slowest most unreliable and untrustworthy delivery record where you simply don’t know if or when your package will ever fkn turn up in your letter-box (not the hard working drivers, they’re the ones doing the hard yards whilst the slippery slimy corporate entity wallows in fraud , corruption and incompetence at the greasy corporate-office level) Fk aramex, they’ve always stunk…
What a joke.
The aussie banking cartel is stealing $8b excess profits from cash strapped kiwis every year. $1600 from every man, woman, and child in nz.
It is no wonder kiwis can’t afford kids with the $6400 annual banking cartel premium a family of 4 has to pay.
Aided and abetted by Nicola Willis who reduced banks capital requirements allowing Aussie banks to take more risks in NZ.
Kiwis can expect another enormous bank bail out bill when the market crashes
Courier companies obviously didnt pay out the necessary nz politician bribes. Nor offer ex nz politicians lucrative post politics board positions.
Yes exactly… picking on Aramex is simply scapegoating… NZ Post is actually way worse!!! But after all the Commission needs to be seen to be doing something for all the millions they are pocketing. 🙁
I would say that most business is in cartel agreement especially services such as plumbers, electricians and so on. Any business can go before the commission but proving it is another thing.
That is weird. Com com is back to front, how about doing the grocery and electricity cartel. Things human need to be able to survive, instead they pick on courier drivers. Absolutely nutty people at that commission.
100%
Any oligopoly is a cartel. The most obvious are energy, banks, supermarkets.
Great to see cartel behaviour attacked, especially courier companies who steal GST refunds (on imports) which are legally owing to the end-user-customer.
Cartel Agreements…
Tried to get a plumber out to do some work (heat pump innstallation) and he / they never gave a quote after visiting the home…said they were weeks behind.
Fast forward to 5 months later with a home renovation company, who priced a new bathroom, loo and …heat pump installation.
Guess who shows-up?
The plumber who couldn’t be bothered, as well as an associated electrician!
Both sub-contracted to the home reno company.
Now paying double for what was initially to be an individual request for a quotation from the plumber only!
Paid the home reno company which had exhorbant plumbing and electrical installation fees blended into the reno agreement and quotation.
So yes- it is a cartel of Old Boy Tradies (Masonic???) who determine who gets what insofar as services, repairs and renos.
The plumber and his smart-ass statement of ‘Oh, I’ve been here before,…didn’t you want an estimate on a hot water heater or something?”
It’s obvious that many tradies can’t self manage, so they sub-contract with the home reno groups, which pays much more at our expense.
Told the plumber to get his work done and to then get the hell OFF the property! The plumber took smoko breaks, went to lunch for 2 hours, and had to make three supply runs for basic sundries that he should have had supply-benched in his van.
Intrusive, and with constant interruptions.
He seemed to be making a lot of phone calls to the home reno compnay, and always walked away from the job when doing that, as though to make a report, get more info on the customer, etc.
The building cartels do a great job at ripping people off, as well as gaslighting and occasionally with coordinated gang stalking.
If you fall out of favour with them, they’ll do a shitty job, or just walk-off and then spread the word that you’re a ‘bad customer’ to the point you’ll not be able to get anything done…!
Saw the plumber the other day at a plumbing supply store whilst purchasing a slow-closing toilet seat, when he quipped ‘Are you sure that you know how to install that?”
I told him to fuck-off in front of the service desk person…and the toilet seat installation took me 5 monutes.
THIS IS THE ATTITUDES WE ALL ENCOUNTER WHEN CERTAIN PEOPLE, INDIVIDUALS AND FAMILIES ARE TARGETED FOR MARGINALISATION AND DISENFRANCHISEMENT BY THE (MASONIC / OLD BOY-OLD GIRL) STATUS-QUO.
What about the trade me cartel.