Fletcher unit blows whistle on attempted price-fixing in Christchurch
By Rebecca Howard
April 18 (BusinessDesk) - The Commerce Commission has warned a Christchurch pipeline maintenance firm over attempted
price-fixing after a Fletcher Building unit blew the whistle on two former staffers who shared pricing with a rival.
Quik-Shot Limited and its director, Raad Al-Karbouli, have been issued formal warnings for trying to fix prices relating
to pipe rehabilitation services in Christchurch, the Commerce Commission said in a statement.
“Taking into account the lack of harm caused by Quik-Shot’s unsuccessful bid and the limited duration of the
anti-competitive conduct, we considered a formal warning was sufficient in this instance. However, this case is a useful
reminder to businesses to maintain strict oversight of their tender and pricing processes and avoid discussing pricing
information with competitors,” commission chair Mark Berry said.
The investigation was opened after Fletcher Construction raised concerns about the conduct of two now former employees
of its subsidiary company Pipeworks. The investigation ultimately focused on quotes requested by a business seeking pipe
rehabilitation services in November 2017.
According to the commission, the investigation found the Pipeworks employees had provided Al-Karbouli with the price
Pipeworks would be submitting for the contract through WhatsApp, and recommended a price range that Quik-Shot should
quote to win the work.
Al-Karbouli confirmed his receipt of this information and submitted a price for Quik-Shot within this range. These
communications between competitors were unknown to the business and it ultimately awarded the contract to Pipeworks, the
commission said.
(BusinessDesk)
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