Wilson Parking to sell parking lots and pay $ 500,000 for anti-competitive behavior

Wilson Parking New Zealand Limited agreed to ditch the leases for three parking facilities in downtown Wellington and pay $ 500,000 for the Commerce Commission costs for anti-competitive behavior.

The Commerce Commission filed a proceeding in Superior Court in 2018 following customer complaints that Wilson Parking had raised prices at the Capital car park, which Wilson acquired in June 2016 without authorization from the Commission.

The commission alleged that Wilson Parking substantially reduced competition for the supply of car parking in the Boulcott St area when it acquired the rights to operate Capital’s parking lot.

“The acquisition of Wilson Parking eliminated one of the few alternatives for motorists wishing to park in this part of downtown Wellington, which, in our opinion, would likely result in a substantial decrease in competition,” said the President of the Commission, Anna Rawlings.

“The sale of three parking spaces in the central Wellington area will reintroduce a measure of competition and mean that customers will have an alternative to Wilson Parking.

“Anticompetitive acquisitions are a priority area for the Commission and this is a reminder to companies that if they have any doubts about the effects of a merger on their competitors, they should ask us for authorization before completing the deal.”

The total number of parking spaces being sold is 850. The capital’s car park comprises 659 of those parking spaces.

As a result of the settlement, the commission suspended the proceedings against Wilson Parking without any admission of fault by Wilson Parking or any finding of non-compliance with the Commerce Act.

Ryan Orchard, CEO of Wilson Parking New Zealand, said that while they were confident in the litigation, he is pleased to have reached an agreement that will result in a cooperative relationship with the commission in the future.

“Wilson Parking is committed to continuing to invest in its operations to maintain its excellent service to our customers.

“We believe that our open collaboration with the Commerce Commission is mutually beneficial and is an example of how we are proactively working with communities and businesses to generate support for future efforts.”

Wilson Parking must assign car parking leases to a commission-approved buyer or buyers. It must also notify the commission of any proposed acquisition of new car parks in central Wellington over the next five years.