The Commerce Commission is taking Foodstuffs North Island and its subsidiary Gilmours Wholesale to court, citing what it labels 'cartel conduct'.

The regulator has alleged that the retailers pressured a supplier into an agreement to redirect supply through them.

Competition lawyer Andy Matthews says it's all allegations at this stage, but New Zealand has very 'broad' cartel laws.

"What it means is - pretty much any agreement with an actual or potential competitor probably has a cartel provision. And it's up to the party who's entered into the alleged cartel provision to demonstrate an exception that the Commerce Act applies."

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