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A Wellington taxi company says it's dropping its flat card fee - which it has been applying to Eftpos payments in order to comply with Commerce Commission rules. But other taxi companies are continuing a charge the commission says is unjustifiable for consumers. Ellen O'Dwyer reports
The Commerce Commission filed proceedings in May against Hutt and City Taxis Limited after alleging it had agreed with two competing taxi companies to implement a minimum charge of $25 for pick-up trips at Wellington Airport.
Press Release – Commerce Commission The Commerce Commission has filed proceedings at the High Court in Wellington against Hutt and City Taxis Limited (Hutt & City) for alleged price fixing. The Commission alleges Hutt & City contravened the Commerce Act by reaching a price-fixing … The Commerce Commission has filed proceedings at the High Court in Wellington against Hutt and City Taxis Limited (Hutt & City) for alleged price fixing. The Commission alleges Hutt & City contravened the Commerce Act by reaching a price-fixing agreement with two competing taxi companies to implement a minimum...
The commission alleged that Hutt and City tried to reach the same price-fixing agreement with a third taxi company. The commission warned four former Hutt and City directors: Rahid Amin, Sathishkumar Dharndapani, Dharmendra Krishnan, and Paul Swain. It also issued a warning to a separate company, Kiwi Cabs Ltd. Only the courts can decide whether a breach of the law has occurred. The commission sought a declaration from the court that Hutt and City contravened the Commerce Act, and it sought financial penalties and costs. “Cartel conduct harms consumers by preventing businesses from com...
Representational image. Photo: 123rf The market watchdog claimed that Hutt & City Taxis Limited breached the Commerce Act in September by reaching an agreement with two competing taxi firms to fix a minimum fare of $25 from Wellington Airport. "It's alleged the fare was implemented through the distribution of stickers displaying the minimum charge to be placed on taxi vehicles," the commission said. The conduct ceased in November, after which an investigation was launched, the commission said. It also claimed the company engaged in anti-competitive behaviour with a third company. The commiss...