NZ's ComCom takes Fletcher's GIB board unit to court over competition claims (updated)

Fletcher Building

31/10/2024 20:32

(Adds details and background)
       Nov 1 (Reuters) - 
    The New Zealand Commerce Commission filed proceedings
against Winstone Wallboards, the GIB-board unit of Fletcher
Building  FBU.NZ , on competition claims, alleging the use of
discounts in supply deals with building material providers for a
five-year term.
    The commission (ComCom) on Friday said it is taking the
firm, which manufactures and supplies GIB-branded plasterboard,
to courts, alleging the use of "retroactive tiered rebates" as
part of agreements.
        Fletcher had earlier notified of ComCom's 
    investigation outcome
     in August, stating that it disagreed with the findings as
"rebates are common within the building products industry and
are simply one aspect of competing."
  
        "While the use of rebates can deliver benefits,
retroactive tiered rebates can also harm competition when
they’re used by a supplier with substantial market power because
they can reduce the ability of smaller suppliers or new entrants
to compete," ComCom Chair John Small said.
  
    The commission had in a report identified that retroactive
rebates were harming competition in the market, citing a market
study into residential building supplies completed around the
end of 2022. 
        Fletcher has indicated there was nothing wrong with what
Winstone had been doing and added the intention of defending the
commission's proceedings. 
  
        Winstone owns over 90% of New Zealand's wallboard market
and is the country's only plasterboard manufacturer.
  

 (Reporting by Shivangi Lahiri in Bengaluru; Editing by Shailesh
Kuber and Maju Samuel)
 ((Shivangi.Lahiri@thomsonreuters.com;))