Reinforcing International Cooperation to Combat Cartels

Ottawa, August 20, 2007 — The Canadian Competition Bureau and the Commerce Commission of New Zealand have completed successful bilateral talks aimed at strengthening co-operation between the agencies to combat international cartels.

"Cartels are one of the biggest threats to competition in New Zealand," said Paula Rebstock, Chair of the Commerce Commission. "In many cases they are being led by overseas companies with a clear impact on New Zealand markets, inflating the costs of key inputs and placing a drag on our international competitiveness. We are looking forward to working more closely with Canada in this important area."

"A concerted international effort is needed to combat cartels in today's global economy," said Sheridan Scott, Canadian Commissioner of Competition. "Consumers and businesses increasingly depend on products that originate from supply chains that span across national borders. As a result, criminal cartels from around the world can cause damage to our economy and can drive up prices for Canadians."

A cartel refers to an agreement between businesses to control production or marketing arrangements, and not to compete with each another. Agreeing to fix prices, restrict output, allocate markets, or rig bids for goods and services are examples of illegal activities. Cartels harm other businesses and consumers by artificially raising prices, restricting choice, or reducing quality and service.

The Commerce Commission is New Zealand's competition and fair trading enforcement agency, and has regulatory responsibilities in the energy, telecommunications and dairy sectors. Its responsibilities include enforcing and adjudicating under generic competition law that prohibits anti-competitive behaviour and structures (Commerce Act, Electricity Reform Act). It also enforces and provides information about consumer law that prohibits false and misleading behaviour by persons in trade (Fair Trading Act) and requires the disclosure of certain information to consumers entering into credit contracts (Credit Contracts and Consumer Finance Act).

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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