Commerce Commission files High Court proceedings against Ronovation

The Auckland High Court.
The Auckland High Court. Photo credit: File

The Commerce Commission has filed High Court proceedings against Auckland investment firm Ronovation Ltd as the Commission alleges it's been price fixing in Auckland's real estate market.

Ronovation, trading as Ronovationz, is accused of "bid rigging" or agreeing not to compete at auctions or tenders, which is a form of cartel conduct - prohibited under section 30 of the Commerce Act.

The Commission alleges the firm, which conducted business advising members on how to acquire and improve investment properties in Auckland, developed rules in September 2011 to govern the conduct of members, including rules that prevented Ronovation members from competing for properties.

A statement from the Commission said it had entered into a settlement with Ronovation to resolve proceedings.

"A penalty hearing will be scheduled in due course. As this case is before the court, the Commission cannot comment further at this time."

Ronovation has been contacted for comment.

Newshub.

Contact Newshub with your story tips:
news@newshub.co.nz