Auckland International Airport Reverses Decision of Single Retailer Amid Pressure

Auckland International Airport has withdrew from intense pressure from the Commerce Commission and decided not to continue with their prior announced plans for moving from 2 duty free companies to only one. Don Huse, the Chief Executive Officer of Auckland International Airport, announced the decision Thursday morning. As reported, the Commerce Commission declined the clearance of a proposed acquisition by Duty Free Shoppers Group of the New Zealand interests of The Nuance Group. In rejecting the acquisition on grounds of anti-competitiveness, the Commerce Commission also underlined their doubts about the decision made last year by Auckland International Airport to appoint only one duty free retailer, Duty Free Shoppers, rather that the tradition duopoly of Duty Free Shoppers and The Nuance Group.

It was this decision that cued the proposed Nuance Group divestment to Duty Free Shoppers. The resultant investigation of the Commerce Commission drove Auckland International Airport into reasoning that they are locked in an argument that they can’t, or will probably not, win if they defend their previous decision. On Thursday, Auckland International Airport said that they have decided to keep the 2 operators instead of facing the prospect of a further argument with the Commerce Commission, who has been investigating their decision to move to have only one operator. They say that the airport has given a formal venture in retaining the 2 operators until June of 2015. The Commerce Commission has told the airport that even though they consider the conduct of the airport to be risking the breach of the Commerce Act, they will cease their investigation.

Get more information from: www.auckland-airport.co.nz