Telecom in the dock over price fixing allegations

25 Mar 2004

New Zealand’s Commerce Commission this morning filed court proceedings against Telecom Corp New Zealand (Telecom), over allegations that the company has been abusing its dominant position to stifle competition in the high speed data transmission market. In particular the Commission has cited Telecom for setting its retail data transmission tariffs lower than the wholesale prices it offers competitors wishing to resell the product. If it is found guilty of breaching the Commerce Act, Telecom could be fined up to NZD10 million, or an amount equal to three times the sum the telco is deemed to have gained from undertaking the illegal practice.

New Zealand, Spark