The Commerce Commission has published a statement of preliminary issues relating to an application received on 22 January 2009 from Media Monitors Pty Limited seeking clearance to acquire all the business and assets of Chong Bureau Limited.

The statement of preliminary issues is a new part of the Commission's clearance process which arose out of consultation with the business community in 2008. The Commission will now routinely issue a statement of preliminary issues as part of its clearance process.

The Commission's statement of preliminary issues and the public version of the application can be accessed via the Commission's website www.comcom.govt.nz under the Clearances Register. The statement of preliminary issues outlines the key competition issues the Commission currently considers will be important in deciding whether or not to grant clearance.

In summary, the key issues that the Commission will consider at this stage of the investigation are:

  • who currently competes with Media Monitors and Chong and what their ability to expand their existing services is;
  • the constraint offered by the ability of a new entrant to replicate the services offered by Media Monitors and Chong; and
  • the constraint offered by the ability of existing customers to perform the services provided by Media Monitors and Chong themselves.

The Commission invites submissions from interested parties who consider that they have information relevant to the Commission's consideration of this matter. Submissions can be sent to the Registrar at registrar@comcom.govt.nz with the reference Media Monitors/Chong in the subject line of the email or to

PO Box 2351, Wellington

6140, by 5pm on Friday 13 February 2009.

 

No further comment will be made by the Commission until the outcome of the clearance application is announced.

Background

The Mergers and Acquisitions Clearance Process Guidelines were issued by the Commerce Commission in November 2008. These guidelines introduced a new stage in the Commission's process, which is to make public a statement of preliminary issues for clearance applications received.

The guidelines can be downloaded from the Commission's website www.comcom.govt.nz under Publications/Guidelines.

The Statement of preliminary issues outlines the key competition issues the Commission currently considers will be important in deciding whether or not to grant clearance. The issues highlighted in the statement are based on the information available at the time of publication and may change as the Commission's assessment of the application for clearance progresses. Therefore, the issues highlighted in a statement of preliminary issues are in no way binding on the Commission.

The statement of preliminary issues provides an opportunity for all interested parties to consider the issues identified by the Commission and is intended to facilitate the submission of further information by the merger parties and other interested parties that might assist the Commission's assessment of the application.