UPDATE: Enviro Waste fined $450k for trying to fix prices

UPDATE: Enviro Waste fined $450,000 for attempting to fix prices with competitor

(adds statement from Enviro Waste from 7th graph)

By Edwin Mitson

Dec. 3 (BusinessDesk) - Enviro Waste Services has been fined $425,000 by the High Court in Auckland after a branch manager in Nelson tried to strike a deal on prices with a rival.

The Commerce Commission started investigating Bens Oil, a division of Enviro Waste, when branch manager Darrell Askew approached competitor Transpacific Industries Group (TPI) in September 2012. TPI had begun offering to pay customers to collect their waste oil, while Bens Oil simply collected it free of charge. Askew tried to reach an agreement not to compete aggressively for each others' customers, and threatened that Bens Oil would enter the separate waste tallow market to compete with TPI if they couldn't see eye to eye. No deal was done.

Askew admitted liability and was personally fined $5,000. Enviro Waste also agreed to pay $25,000 towards the cost of the Commerce Commission's investigation, bringing their total payment to $450,000.

Waste oil is the leftover lubricant oil used in motor vehicles and hydraulics. It can be refined into light oil, which can be used in some heating systems.

Commerce Commission chair Mark Berry said the fine is a strong reminder for businesses to avoid discussing prices or market share with rivals.

"Attempting to strike an anti-competitive agreement is illegal, regardless of whether it is calculated or an ill-thought out reaction to competitive pressure," Berry said. "Businesses should avoid having any discussions with competitors about their pricing or business models to ensure they don't put themselves at risk of breaching the Commerce Act".

In a statement, Enviro Waste said the employee acted solely on their own, and that it had complied fully with the regulator during the investigation.

"We are deeply disappointed and regret the attempted anti-competitive behaviour undertaken by an employee. Breaches of the Commerce Act are not tolerated at Enviro Waste and we are satisfied that no one else in our company was involved in nor aware of the actions being settled," it said.

"We are deeply disappointed that this event occurred but can confirm that it was an isolated incident and it is the first time any such matter has arisen for us."

The company said it has conducted its own internal probe to prevent it from happening again.

Enviro Waste was originally established in June 1995. The company's website says that in April 2013 it was bought by the Hong Kong-based Cheung Kong Infrastructure Holdings, the largest publicly listed infrastructure company.

(BusinessDesk)

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