Competition watchdog bid to force Wilson Parking to give up parking building

Friday, 20 July 2018

The Commerce Commission is seeking to have Wilson Parking to be forced to give up a multi-level parking building on Boulcott Street in Wellington.

Wilson Parking could be forced to give up a parking building in central Wellington, as it faces court action alleging it 'substantially' lessened competition in the area.

The Commerce Commission said it had filed proceedings in the High Court at Wellington against Wilson Parking over its acquisition of a large multi-level car park at 50-60 Boulcott Street in 2016.

It is seeking both penalties and to force the company to lose the lease.

In a statement, the competition watchdog said that in 2015, Wilson Parking was granted clearance obtain the nearby Plimmer Towers carpark, pointing out at the time that the company would face 'competitive constraint' because a rival operated the Capital carpark on Boulcott St.

A year later, Wilson Parking acquired a long term lease on the Boulcott St carpark. The commission said when it took the lease, 'it did not apply for clearance' to do so.

'In February 2017, the Commission began receiving customer complaints about price increases at the Capital car park. This led the Commission to investigate the acquisition under section 47 of the Commerce Act, which prohibits acquisitions that are likely to substantially lessen competition in a market,' the commission said.

'The Commission alleges the acquisition 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. The Commission will be seeking a penalty against Wilson Parking, and orders ending its lease of the Capital car park.'

Wilson Parking refused to comment beyond a short statement.

'Wilson has cooperated with the Commerce Commission through its 15-month investigation and is disappointed with the outcome.'