Telecom New Zealand Limited has withdrawn its s66 clearance application to acquire the radio spectrum management rights, known as MED radio frequency auction No 5 lot 01 WLL 06, from Counties Power Limited.
Telecom proceeded with the acquisition without a clearance, and the Commerce Commission is now investigating whether this acquisition is in breach of section 47 of the Commerce Act.
Background
Under section 47 of the Commerce Act a person must not acquire assets of a business or shares if the acquisition would have, or would be likely to have, the effect of substantially lessening competition in a market.
The clearance regime is a voluntary regime. Under section 66, the Commission may grant clearances for acquisitions where it is satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in a market.
