The Commerce Commission has developed a new streamlined authorisation process that will enable faster decisions on certain authorisation applications. This should result in more timely and cost-effective decisions by businesses.

The streamlined process will be available for certain applications that seek the Commission's authorisation for practices or acquisitions, which may otherwise breach certain provisions of the Commerce Act, that have obvious public benefits and a relatively limited impact on competition. The Commission will grant an authorisation if it is satisfied that the public benefit associated with a practice or acquisition outweighs the loss of competition.

The business and legal communities are being asked for input on a set of draft guidelines that outline this new process. After considering feedback, the Commission will publish the finalised guidelines.

"The new streamlined process will benefit applicants," said Deborah Battell, Commerce Commission Director of Competition. "Applications for which the process may be used will be determined quickly, enabling businesses to make more timely decisions. It will also ensure that applicants' costs are kept to a minimum. Importantly, the new streamlined process should encourage businesses to apply to the Commission to have arrangements authorised where they result in clear public benefits."

The draft guidelines set out the criteria that the Commission will use to determine whether or not the streamlined process may be used for a particular application. The guidelines also describe the key milestones in the process. The Commission expects that not all authorisation applications will be suitable for the streamlined process.

The draft guidelines can be viewed on the Commission's website www.comcom.govt.nz under Business Competition/Resources

Submissions can be made in writing to:

Streamlined authorisation process guidelines feedback,

Commerce Commission, PO Box 2351, Wellington, 6140

or by email to sagfeedback@comcom.govt.nz by 5 pm, 13 April 2009.

Background Authorisations. The Commission may grant authorisations with respect to restrictive trade practices or business acquisitions, that may otherwise breach certain provisions of the Commerce Act, on application by a person or business involved in such a practice or acquisition. In general, the Commission is empowered to grant an authorisation if it is satisfied that the public benefits of the practice or acquisition outweigh the detriments arising from the loss of competition. Part 5 of the Act sets out some procedural requirements for the consideration of authorisation applications.

The granting of an authorisation protects the applicant from having court action under certain provisions of the Act taken against them by the Commission and or another party.

The streamlined authorisation process is available for applications made under:

  • section 58 of the Commerce Act (restrictive trade practice authorisations); and
  • section 67 of the Commerce Act (business acquisition authorisations).

The Clearances Register contains a full list of all applications for authorisation received by the Commission. Public registers can be viewed on the Commission's website www.comcom.govt.nz