The Commerce Commission has secured penalties against a second construction company (currently under interim name suppression) in New Zealand’s first criminal prosecution for cartel conduct.
The company pleaded guilty to bid-rigging on the Northern Corridor Improvement and Auckland Transport’s Middlemore Bridge projects in 2022. The conduct involved cover pricing, which is a practice where one company submits an intentionally higher bid to help another win the tender.
The High Court imposed a $30,000 fine on the company. This was significantly lower than the fine imposed by the Court on the first company, MaxBuild, because of the second company’s inability to pay. Charges against its director were dropped because of ill health and the company’s guilty plea.
By comparison, in December 2024, MaxBuild was fined $500,000, and its director received six months of community detention and 200 hours of community work for similar cartel conduct.
Cartel conduct remains a priority for the Commerce Commission in 2025/26, with a focus on practices undermining competition in procurement of public services and infrastructure contracts. Businesses should expect heightened scrutiny of tender processes following this landmark prosecution in the construction sector.
Key contacts
Speak with one of our experts.
