The Commerce Commission has filed action against Wilson Parking at the High Court in Wellington, arguing it has a monopoly on parking on Boulcott St in the CBD.
The Commission alleges that Wilson Parking "substantially lessened competition" in the area after buying the rights to operate the Capital car park, a multi-storey carpark at 50-60 Boulcott St.
Wilson Parking also runs the Plimmer Towers car park around the corner on the same street. It was granted permission to do so in 2015, as the Commission noted there would be a competitive constraint as the Capital car park was run by a rival company at the time.
But in June 2016 when Wilson Parking acquired the long-term lease to operate Capital car park, it had not applied for clearance from the Commission.
Since then there have been a number of complaints from the public against prices at the Capital car park, leading the Commission to open an investigation under Section 47, which prohibits acquisitions that are likely to substantially lessen competition.
The Commission alleges that the move "removed one of the few alternatives to Wilson Parking in the area, resulting in a substantial lessening of competition for the supply of car parking in and around Boulcott Street".
It is seeking a penalty against Wilson Parking and an order to end its lease at the Capital car park.
Wilson Parking is New Zealand's largest parking provider, it operates 52 car parks in Wellington and over 350 across the country.
Individuals who breach Section 47 can be subject to up to $500,000 in penalty fees while firms can face up to $5 million.
Newshub.