Wilson Parking will sell three of its large Wellington parking buildings and pay $500,000 to the Commerce Commission following allegations of anti-competitive behaviour.
Wilson Parking and the Commerce Commission have agreed to resolve the High Court proceedings which were filed in 2018 following customer complaints that Wilson had hiked prices at one of its central Wellington car parks.
Wilson acquired the Capital car park on Boulcott Street in June 2016 without clearance from the Commerce Commission.
The Commerce Commission began receiving customer complaints in February 2017 about price increases at the carpark, prompting it to be investigated.
The Commission alleged this lessened competition for the supply of car parking in the Boulcott Street area.
"Wilson Parking's acquisition removed one of the few alternatives for motorists wishing to park in this part of Wellington's central city, which, in our view, was likely to result in a substantial lessening of competition," said Commission Chair, Anna Rawlings.
“The divestment of three car parking facilities in the Wellington central area will reintroduce a measure of competition and will mean that customers will have an alternative to Wilson Parking.
“Anti-competitive acquisitions are a priority area for the Commission and this is a reminder to businesses that if there is any doubt about the competition effects of a merger, they should seek clearance from us before completing the deal.”
On Wednesday Wilson agreed to divest the leases of three of its parking facilities - a total of 850 car parks - including Capital.
"The divestment of three car parking facilities in the Wellington central area will reintroduce a measure of competition and will mean that customers will have an alternative," said Rawlings.
It will also pay $500,000 towards the legal costs of the Commission.
Chief Executive Officer of Wilson Parking New Zealand Ryan Orchard said in a statement that he is pleased to have reached a cooperative conclusion.
"We believe that our open collaboration with the Commerce Commission is mutually beneficial and is an example of how we proactively work with the communities and businesses in building support for future endeavours."
The Commission has discontinued the proceedings against Wilson Parking without any admission of fault from Wilson Parking or any finding of a breach of the Commerce Act.
