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Two Hamilton real estate companies have been fined $ 4 million between them for a price-fixing “cartel” of which they were part.
Thirteen companies have been fined in connection with the scheme, in which real estate agencies agreed among themselves to pass on the new costs, imposed by the Trade Me auction site, to suppliers.
The latter two are Lodge Real Estate (fined $ 2.1 million) and Monarch Real Estate ($ 1.9 million), “penalized for their roles in coordinating Hamilton’s regional response to the pricing decision of Trade Me “.
“It is not unusual for industries to experience price increases from suppliers and this case illustrates how important it is for companies to avoid any discussion with their competitors about how they could or should respond to such a change,” said Anna Rawlings, President of the Commerce Commission.
“Cartels can harm consumers and businesses by raising prices, restricting supply and changing the competitive dynamics between companies.”
In total, the 13 companies involved have been fined $ 23 million.
