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The Auckland High Court ordered two Hamilton estate agencies to pay a total of $ 4 million for pricing.
Lodge Real Estate has to pay $ 2.1 million and Monarch Real Estate Ltd has to pay $ 1.9 million for engaging in price setting, in violation of the Commerce Act, the Commerce Commission said Thursday.
The saga began in 2013, when Trade Me raised the listing prices of its properties online. Several Hamilton real estate agencies met to discuss their responses.
The commission first filed legal proceedings in December 2015 against 13 national and regional real estate agencies and three individuals for agreeing to pass on the costs of the Trade Me price change.
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The saga began in 2013, when Trade Me raised the listing prices of its properties online.
Several agencies admitted their responsibility and paid fines to the commission. Some exceeded a million dollars.
The penalties in the case amounted to just under $ 23 million.
Lodge and Monarch were penalized for their roles in coordinating Hamilton’s regional response to Trade Me’s pricing decision, the commission said.
A Lodge director and a Monarch director did not have to pay a fine, the Superior Court ruled, despite a previous Appeal Court finding that they engaged in illegal conduct, which was confirmed by the Supreme Court.
The commission filed proceedings for alleged pricing and anti-competitive behavior in 2015 after the agencies decided they would no longer cover the costs of Trade Me property listings for their suppliers. The seller of the property, or his agent, would pay.
The commission’s claims against Lodge and Monarch, and their directors, were dismissed by the Superior Court in 2017.
TOM LEE / STUFF / Waikato Times
Several Hamilton real estate agencies met to discuss their responses to the price increase.
In 2018, the commission successfully appealed to the Court of Appeal.
The case then went to the Supreme Court, where Lodge, Monarch and their directors lost their long battle against the price-fixing accusations.
“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 the president of the commission Anna Rawlings.
“Cartels can harm consumers and businesses by raising prices, restricting supply, and changing the competitive dynamics between businesses.”
Starting next April, the cartel’s conduct will be a criminal offense with a maximum of seven years in prison.
“We strongly urge companies to familiarize themselves with the law and ensure they have processes in place to protect against collusion with their competitors,” Rawlings said.
