Two of New Zealand’s largest courier services have reached a settlement with the Commerce Commission for engaging in cartel conduct.

Aramex New Zealand and Sweetspot Group Limited, which operates GoSweetSpot, agreed to resolve the separate proceedings with the commission following civil action in the High Court.

The two companies now await a penalty hearing.

The commission does not allege that Aramex and GoSweetSpot entered into an agreement with each other.

Instead, Aramex has admitted to entering into and giving effect to a contractual arrangement that allocated customers and fixed prices between itself and another competitor in the courier services market.

Separately, GoSweetSpot has admitted to entering into and giving effect to contractual arrangements that allocated customers between itself and another competitor in the courier services market.

Both of the contracts were negotiated in the context of reseller/carrier arrangements, the commission said.

Aramex provides courier transportation services to customers, while GoSweetSpot is a reseller, which “brokers” the provision of courier transportation services to customers.

Both resellers and carriers can compete for the same customers.

Cartel conduct is illegal under the Commerce Act 1986. A cartel is where two or more businesses agree not to compete with each other.

Cartel conduct can include price fixing, sharing markets, rigging bids or restricting output of goods and services.