Commission alleges price collusion in waste oil industry

The Commerce Commission has filed proceedings in the High Court at Auckland alleging collusion in the fixing of prices in the waste oil industry. The commission said it began investigating the waste oil industry in 2006 following an approach by a whistleblower. The commission alleges that representatives of ERS New Zealand Ltd. (ERS NZ), one of the largest providers of waste oil services in New Zealand, approached another major provider and attempted to fix prices for waste oil collection services. Proceedings under the Commerce Act are being taken against the ERS NZ and one unnamed director of the company. The two companies in the case were involved in the collection and disposal of waste oil, such as waste lubricant oil used in motor vehicles and fuel, which is collected from the slop tanks of ocean going vessels. (March 27, 2009)