Commission welcomes further strengthening of Commerce Act
Published11 Feb 1999
The Commerce Commission welcomes the Government's initiative to further strengthen the Commerce Act.
Commission Chairman Peter Allport said that the Government's proposals to toughen existing provisions and introduce new initiatives to the Act would help the Commission in its role of promoting healthy competition in New Zealand.
Mr Allport said that the Commission had previously raised concerns about limitation periods, penalties, action against individuals and injunctions, and the Government has proposed changes in all these areas.
"Generally the Act has worked successfully to promote healthy competition but experience has shown that some parts of it need development. In recent times the Commission has enjoyed significant success. The Government's proposed changes should aid that development.
"Care will, however, be necessary to ensure that the proposed changes are implemented properly. We would not like to see valuable precedents undermined or significant future uncertainty introduced into New Zealand's competition law."
Examples of enforcement action under the Act last year include:
. total penalties of more than $5.5 million imposed on a group of North Island meat companies that admitted they had entered into anti-competitive arrangements relating to the prices they would pay farmers for livestock;
. Southpower Limited paying $450,000 costs to the Commission, restructuring its businesses and no longer contesting the Commission's Court action against it; and
. Christchurch Transport Limited and its Chief Executive personally paying a total of $400,000 in penalties and costs for an attempted price fixing arrangement.
Commerce Act cases currently before the courts include cases against:
. Caltex (NZ) Limited, Mobil Oil New Zealand Limited and Shell New Zealand Limited;
. Carter Holt Harvey Limited;
. Fletcher Challenge Limited, Fletcher Challenge Energy and Electricity Corporation of New Zealand; and
. The Ophthalmological Society and five individual ophthalmologists.
