New Zealand Acts

COMMERCE ACT 1986 - SECT 65A

65A Commission may give clearances relating to cartel provisions

1 A person who proposes to do any of the following may apply to the Commission for a clearance under this section:

a) enter into a contract or an arrangement that contains, or may contain, a cartel provision:

b) arrive at an understanding that contains, or may contain, a cartel provision:

c) give, or require the giving of, a covenant that contains, or may contain, a cartel provision.

2 The Commission must give a clearance under this section if it is satisfied that—

a) the applicant and any other party to the proposed contract, arrangement, understanding, or covenant are or will be involved in a collaborative activity; and

b) every cartel provision in the contract, arrangement, understanding, or covenant is reasonably necessary for the purpose of the collaborative activity; and

c) the following will not have, or would not be likely to have, the effect of substantially lessening competition in a market:

i) entering into the contract or arrangement:

ii) arriving at the understanding:

iii) giving, or requiring the giving of, the covenant:

iv) giving effect to any provision of the contract, arrangement, understanding, or covenant.

3 For the purpose of subsection (2), it is not necessary for the Commission to determine whether a particular provision is in fact a cartel provision, providing there are reasonable grounds for believing it might be.

4 If clearance is not given within 30 working days after the date on which the application is registered in accordance with section 60(2)(a) , the Commission is deemed to have declined to give the clearance, subject to any alternative timetable agreed between the Commission and the person applying for clearance.

History: Section 65A: inserted, on 15 August 2017, by section 17 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).   Section 65A(1): replaced, on 5 April 2023, by section 33(1) of the Commerce Amendment Act 2022 (2022 No 11).     Section 65A(2)(a): amended, on 5 April 2023, by section 33(2) of the Commerce Amendment Act 2022 (2022 No 11).     Section 65A(2)(b): amended, on 5 April 2023, by section 33(2) of the Commerce Amendment Act 2022 (2022 No 11).     Section 65A(2)(c): replaced, on 5 April 2023, by section 33(3) of the Commerce Amendment Act 2022 (2022 No 11).