The Commerce Commission is taking a herd management and milk testing company to the High Court for allegedly fixing the prices of its products.
The watchdog is claiming that Milfos International and its competitor Smart Farm Technologies agreed to use a common quote calculator when providing quotes to customers.
The Commission alleges that between 2012 and 2014 the companies entered an agreement to fix, control or maintain the price of milk testing products, services, and herd management systems.
The Commission wants Milfos to declare that it has breached the Commerce Act, and to pay a financial penalty and costs.
If found guilty, an individual can be fined up to $500,000, and a body corporate could be charged more than $10 million.
Smart Farm Technologies has only had a written warning and the Commission said it did not intend to take any further action because of the extent of that company's involvement.