New Zealand (2005)

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Score = 16

Governed by: The Commerce Act of 1986, most recently amended in 2005. [1]

Category Subcategory Score Comment
Scope Extraterritoriality 1 §4 extends the act to conduct outside New Zealand.
Remedies Fines 1 §80 allows fines for violations of the Commerce Act.
Prison Sentences 1 §80E allows for prison sentences for those violating a court's order not to participate in corporate management.
Divestitures 1 §85 allows for divestiture after prohibited mergers.
Private Enforcement 3rd Party Initiation 1 §81 and §84 allow any person to go to a court for injunctive relief to stop prohibited practices.
Remedies Available to 3rd Parties 1 §82 and §84A allows third parties to recover in civil suits for damages resulting from prohibited practices.
3rd Party Rights in Proceedings 1 §60 through §64 allow 3rd parties rights to be notified of and participate in authorization hearings.
Merger Notification Voluntary 1 §66 states that parties wishing to merge may request authorization.
Mandatory 0
Pre-merger 0
Post-merger 1
Merger Assessment Dominance 0
Restriction of Competition 1 §47 prohibits mergers that substantially lessen competition.
Public Interest (Pro D) 1 §67(3)(B) allows the Commission to clear a merger if the public benefit outweighs the loss of competition
Public Interest (Pro Authority) 0
Other 0
Efficiency 1 §3A requires the commission to consider efficiency when calculating public benefit.
Dominance Limits Access 0
Abusive Acts 1 §36 (1) prohibits using market power to limit competition.
Price Setting 0


Discriminatory Pricing 0
Resale Price Maintenance 1 §37 prohibits resale price maintenance
Obstacles to Entry 1 §37 prohibits using market power to restrict entry or eliminate rivals.
Efficiency Defense 0
Restrictive Trade Practices Price Fixing 1 §30 (1) prohibits price fixing.
Tying 0
Market Division 0
Output Restraint 0
Market Sharing 0
Eliminating Competitors 1 §28 bans contracts or agreements that reduce competition.
Collusive Tendering/Bid-Rigging 1 The New Zealand Commerce Commission defines bid rigging as price fixing, in its definitions of anticompetitive practices.[2]
Supply Refusal 1 §29 prohibits supply refusal.
Efficiency Defense 1 §3A and §59 require the Commission to consider efficiency when deciding whether to authorize restrictive trade practices.

References

  1. Available from the Government of New Zealand, statute at http://www.legislation.govt.nz/act/public/1986/0005/latest/DLM87623.html
  2. Their page discussing anticompetitive practices can be found at http://www.comcom.govt.nz/BusinessCompetition/Anti-competitivePractices/GuidetoAnti-competitivePractices/anti-competitivepractice.aspx. citing a bid-rigging case in its discussion of price fixing.