Challenge to Infratil begins in High Court

The Commerce Commission's bid to block Infratil's dominance of Wellington's bus services market via its purchase of Mana Coach Services began yesterday in the High Court at Wellington.

The commission has challenged the deal on the grounds it will squeeze smaller competitors out of the bidding for Greater Wellington Region Council and Ministry of Education contracts to provide subsidised regular bus and school bus services in the Wellington region.

That, combined with the likelihood that new entrants would face significant barriers, meant "there would be no significant constraint on the combined firm" commission staff said. The hearing is expected to last two weeks.