PHOTO: FILE
The Commerce Commission is suing Winstone Wallboards, a Fletcher Building subsidiary, for anti-competitive practices, alleging that its rebate system for building supplies merchants from 2017 to 2022 violated the Commerce Act. Chair John Small highlighted that while rebates can be beneficial, retroactive tiered rebates from a dominant supplier can hinder smaller competitors, potentially inflating prices for consumers. Fletcher Building plans to defend itself, arguing that rebates are standard in the industry and had been previously investigated in 2014 without concluding any breach. Legal proceedings are expected to be lengthy.
Fletcher Building NIGHTMARE: CEO and chair resign, $120m half-year LOSS
Fletcher Building says its subsidiary Winstone Wallboards intends to defend the proceedings. Photo: 123rf
SOURCE: RNZ