A sum of $100,000 will be taken as a fine from two pathology Companies, i. e., New Zealand Diagnostic Group and Pathology Associates Limited, who confessed that they entered into an anti-competitive agreement on community testing services in the Waikato.

The Companies pleaded guilty in the High Court at Auckland today, for violating the Commerce Act by entering into an agreement that considerably reduced the competition.

The two Companies entered into an arrangement under which they suspended competition with each other as well as with the Waikato Hospital Laboratory and Waikato District Health Board in 2004. Though, this was done in order to carry out an amalgamation of companies, which never really happened.

A penalty of $65,000 will be levied against New Zealand Diagnostic Group by the court and a sum of $35,000 will be taken from Pathology Associates Limited, as a fine. A sum of $10,000 is to be paid by both the Companies towards the commission's costs.

The Waikato District Health Board though is involved in the matter, but it is not facing any legal action, as there is no evidence against the same.

Commerce Commission General Counsel Peter Taylor said, "It was that agreement not to compete in the Waikato area that caused us concern".