Following public consultation, the Commerce Commission has developed a new streamlined authorisation process. This process has been designed to enable faster decisions for straightforward authorisation applications that have clear public benefits and a relatively limited impact on competition.
The Commerce Act prohibits businesses from engaging in practices or making acquisitions that harm competition, consumers and the economy. However, the Commission can grant a authorisations for certain practices or acquisitions that may otherwise harm competition and breach the Commerce Act if businesses are able to demonstrate that there are public benefits that outweigh the anti-competitive effects.
Applicants will now have the option of applying for an authorisation under the streamlined process, if their application meets certain criteria.
"The Commission anticipates that not all applications for authorisation will be able to be considered using the streamlined process, but applications for which the process can be used will be determined quickly. The streamlined process will allow businesses to make more timely and cost-effective decisions," said Deborah Battell, Commerce Commission Director of Competition. "Businesses are encouraged to apply to the Commission to have arrangements authorised that result in clear public benefits and have a relatively limited impact on competition."
The 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. They also describe the key milestones in the process. A draft was published in March 2009 for public consultation and the final guidelines take into account the submissions received. The final guidelines can be viewed on the Commission's website under Business Competition/Resources/Guides to Anti-competitive Practices.
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 Authorisations Register contain a full list of all applications for authorisation received by the Commission. Authorisation registers can be viewed on the Commission's website under the Authorisations Register.
