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The Commerce Commission has filed high court proceedings against pathology service providers New Zealand Diagnostic Group and Pathology Associates, alleging collusion over services.
The commission alleged that from 2003, NZ Diagnostic Group and its subsidiary Hamilton Medical Laboratory Holdings agreed with Pathology Associates to not compete to acquire clients from each other in the Waikato, ahead of a planned merger which did not eventuate.
The alleged collusion, which included warning the competing provider when GPs were interested in switching to another provider, evolved into a full moratorium on competition.
"Parties who are intending to merge must continue to compete and should be aware that the restrictive trade practice provisions of the Commerce Act continue to apply to them," said commission chairwoman Paula Rebstock.
"In taking proceedings in this case, the Commission hopes to reinforce the benefits of competition to the health sector and underline the illegality of anti-competitive pre-merger coordination," Ms Rebstock said.
The commission said it would make no further comment while the matter was before the courts.
- NZPA
