Com Com proceedings on operations and billing issues

Spark New Zealand Limited ARBN 050 611 277
Spark City, 167 Victoria Street West, Private Bag 92028, Auckland, New Zealand

MARKET RELEASE

9 July 2018
Commerce Commission proceedings on operational and billing issues
The New Zealand Commerce Commission has notified Spark New Zealand that it intends to file court
proceedings today against Spark under the Fair Trading Act 1986 in relation to three separate
historical operational and billing issues:
• An equipment fault in 2015 that affected data billing for a small percentage of customers;
• Incorrect implementation of a ‘welcome credit’ when joining Spark for some fibre broadband
customers during 2016; and
• A billing implementation issue relating to a 30-day notice period when customers left Spark
These were all system-based errors caused by genuine mistakes with no malicious intent involved on
the part of Spark. In respect of all of these issues, Spark has already applied credits to the accounts
of all impacted customers and has made extensive efforts to return all amounts owed to former
customers.
Spark will review the Commerce Commission’s proceedings and has yet to determine the position it
will take in response.
Although the Commerce Commission has outlined the maximum possible penalties available under
law for each of the charges, it has not yet advised Spark of the penalties it will actually seek. The
decision as to actual penalties will ultimately be one for the court however these proceedings are
not expected to have a significant effect on the financial position or profitability of Spark. As such
there is no change to Spark’s existing FY18 guidance, as provided to the market on 25 May 2018.
-ENDS-
For media queries, please contact:
Andrew Pirie
General Manager Corporate Relations
+64 (0) 27 555 0275

For investor relations queries, please contact:
Dean Werder
General Manager Finance and Business Performance
+64 (0) 27 259 7176