New Zealand Acts

COMMERCE ACT 1986 - SECT 54N

54N Breaches of thresholds and default price-quality paths before 1 April 2010

1 This section applies to—

a) any breach of a threshold that occurred before the close of 31 March 2007; and

b) any breach of a threshold that occurs on or after 1 April 2007 and before the close of 31 March 2009; and

c) any breach of a default price-quality path that occurs on or after 1 April 2009 and before the close of 31 March 2010.

2 The Commission may not publish a notice of intention to declare control under Part 4A ,—

a) in respect of a breach referred to in subsection (1)(a), at any time after 1 October 2008; and

b) in respect of a breach referred to in subsection (1)(b) or (c), at any time after the expiry of 12 months after the end of the financial year in which the breach occurs.

3 The Commission may, at any time before the expiry of 12 months after the date on which the Commission publishes a notice of intention to declare control under subsection (2) in respect of the breach,—

a) make a control declaration under Part 4A ; or

b) enter into an administrative settlement in respect of the breach under Part 4A .

4 The Commission may do anything under subsections (2) and (3) as if the Commerce Amendment Act 2008 had not been enacted, except that the purpose in section 52A must be taken to be the purpose of Part 4A .

5 To avoid doubt, the Commission may, but need not, apply input methodologies in acting under subsection (3).

6 Despite anything in Part 4A , any control imposed, or administrative settlement entered into, under Part 4A in accordance with subsection (3) is subject to the following:

a) the term of control, or of the settlement, must be not more than 5 years:

b) the expiry of the term must be treated as if it were the expiry of a customised price-quality path, and section 53X applies accordingly (unless the supplier concerned would not otherwise be subject to default/customised price-quality regulation after the expiry of the term).

History: Section 54N: inserted, on 14 October 2008, by section 4 of the Commerce Amendment Act 2008 (2008 No 70).