KEY POINTS:
The Supreme Court has dismissed an appeal by lines company Unison Networks challenging the validity of Commerce Commission decisions.
Unison was also ordered to pay the commission $25,000 for Supreme Court costs plus reasonable disbursements.
The judgment relates to price thresholds set by the commission for lines companies.
The commission's initial price threshold set in 2003 required that lines businesses made no increases in their price levels for a period of 20 months. Its second price threshold allowed price movements within a stipulated price path.
Unison was dissatisfied with the decisions and increased its prices, putting itself in breach of both thresholds, the Supreme Court said.
The company brought a judicial review proceeding against the commission in May 2004 in which it argued that the commission had set the thresholds in a manner inconsistent with the purpose and requirements of the law.
Unison argued that the thresholds screened businesses on a basis that was irrelevant to whether those in breach of them should be made subject to price control and, in fact, might miss those that should be subject to control.
The Supreme Court found the commission had acted lawfully in setting both initial and revised thresholds.
It overruled a Court of Appeal decision, which had been challenged by the commission, that the first threshold was unlawful.
- NZPA
