Telecom service under scrutiny

The Commerce Commission is investigating Telecom's private computer network service for health-care providers as allegedly anti-competitive.

The commission "alleges that Telecom has used its market power to eliminate a competitor from the market", the company said in a statement filed to the US Securities and Exchange Commission last week. It did not name the rival.

The commission told Telecom of the investigation last week, and had requested information and documents relating to Telecom's behaviour and pricing on its Health Express products, the company said.

The commission could take court action seeking damages and seek an injunction to stop Telecom from continuing, the company said.

Health Express is an intranet computer network service giving primary health care providers secure access to information from their district health board, the Ministry of Health, and other health related services, according to Telecom's website.

Commission spokeswoman Jackie Maitland said the probe was part of an investigation into how Telecom priced for bundles of services and the amount the company charged to resell high-speed internet.

The wider investigation was focused on whether Telecom lessened competition and took advantage of its market power. Telecom says its plans are lawful.

- BLOOMBERG