market power Archives

New Zealand’s Commerce Commission has won a high court battle against Telecom NZ, with the court agreeing that the operator abused its market power to deter competition. The Auckland High Court held that Telecom charged disproportionately high rates for wholesale access to its data transmission access lines during the period between 2001 and 2004. This action – which was a breach of New Zealand’s Commerce Act – prevented ISPs from offering competitive retail prices for high-speed data services. Telecom’s wholesale charges were often higher than its retail prices during this period, the court found. The court found that Telecom aimed to deny competitors access at prices that would allow them to develop their own data transmission networks.