Reprint as at 1 October 2010
Commerce Act 1986 | ||
---|---|---|
Public Act 1986 No 5 | ||
Date of assent 28 April 1986 | ||
Commencement see section 1(2) | ||
Contents | ||
Page | ||
Title[Repealed] | 16 | |
1 | Short Title and commencement | 16 |
1A | Purpose | 16 |
2 | Interpretation | 16 |
3 | Certain terms defined in relation to competition | 26 |
3A | Commission to consider efficiency | 28 |
4 | Application of Act to conduct outside New Zealand | 28 |
5 | Application of Act to the Crown | 29 |
6 | Application of Act to Crown corporations | 29 |
6A | Special provisions relating to application of Act to the | 30 |
Crown in right of Australia and to Australian Crown | ||
corporations | ||
6B | Crown and Crown corporations not immune from | 30 |
jurisdiction in relation to certain provisions of Trade | ||
Practices Act 1974 | ||
6C | Application of Evidence Amendment Act 1980 | 31 |
7 | Law relating to restraint of trade and breaches of | 31 |
confidence not affected |
Note
Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.
Ageneraloutlineofthesechangesissetoutinthenotesattheendofthisreprint,togetherwith other explanatory material about this reprint.
Part 1 The Commerce Commission
8 Establishment of Commission 31 8A Application of Crown Entities Act 2004 32 9 Membership of Commission 32 10 Terms and conditions of appointment 33 11 Associate members 33 12 Chairperson and deputy chairperson 35 13 Termination of appointment of members 35 14 Disclosure of financial interests[Repealed] 36 15 Meetings of Commission 36 16 Chairperson may direct Commission to sit in Divisions 37 17 Assent to determination 38 18 Officers and employees[Repealed] 38 18A Personnel policy[Repealed] 38 18B Equal employment opportunities[Repealed] 39 18C Choice of procedure[Repealed] 39 18D Superannuation and retiring allowances 39 19 Money to be appropriated by Parliament for purposes of 40
this Act[Repealed] 20 Funds of Commission[Repealed] 40 21 Bank accounts[Repealed] 40 22 Crown entity[Repealed] 40 23 Investment of money[Repealed] 40 24 Exemption from income tax 40 25 Functions of Commission in relation to dissemination of 40
information 26 Commission to have regard to economic policies of 41
Part 2 Restrictive trade practices
Practices substantially lessening competition
27 Contracts, arrangements, or understandings substantially 41
lessening competition prohibited 28 Covenants substantially lessening competition prohibited 42 29 Contracts, arrangements, or understandings containing 43
exclusionary provisions prohibited
30 Certain provisions of contracts, etc, with respect to prices 45 deemed to substantially lessen competition
31 Joint venture pricing exempt from application of 45 section 30 32 Certain recommendations as to prices for goods and 47 services exempt from application of section 30 33 Joint buying and promotion arrangements exempt from 47 application of section 30 34 Certain provisions of covenants with respect to prices 47 deemed to substantially lessen competition
Practices substantially lessening competition conditional upon authorisation
35 Contracts or covenants subject to authorisation not 48 prohibited under certain conditions[Repealed]
Taking advantage of market power
36 Taking advantage of market power 48 36A Taking advantage of market power in trans-Tasman 49 markets 36B Purposes may be inferred 50
37 Resale price maintenance by suppliers prohibited 50 38 Resale price maintenance by others prohibited 52 39 Recommended prices 53 40 Withholding the supply of goods 54 41 Preventing the supply of goods 54 42 Special evidentiary provisions in respect of certain resale 55 price maintenance practices 43 Statutory exceptions 55 44 Other exceptions 56 45 Exceptions in relation to intellectual property rights 58 46 Saving in respect of business acquisitions 59
47 Certain acquisitions prohibited 60 48 Baretransferofmarketdominanceexcluded[Repealed] 60 49 Application to building societies[Repealed] 61 50 Certain merger or takeover proposals require clearance 61 or authorisation[Repealed] 51 Contracts subject to condition of clearance or 61 authorisation[Repealed]
Part 4 Regulated goods or services
Subpart 1—Preliminary provisions 52 Overview of Part 61 52A Purpose of Part 61 52B Outline of Part 62 52C Interpretation 63 52D Meaning and application of claw-back 64
Subpart 2—Regulating particular goods or services 52E Overview of process if regulation imposed on goods or 65 services 52F Effect of goods or services being subject to regulation 66 52G When goods or services may be regulated 66
52H How inquiry triggered 67 52I Commission inquiry into particular goods or services 67 52J Process of inquiry 68 52K Commission’s recommendation following inquiry 69
Order in Council imposing regulation
52L Minister’s consideration 70 52M Minister’s decision and recommendation 70 52N Order in Council imposing regulation 71 52O Revocation or amendment of Order in Council 72
Commission determination about how regulation applies
52P Determinations by Commission under this section 72 52Q Amendment of section 52P determination 74
Subpart 3—Input methodologies 52R Purpose of input methodologies 74 52S How published input methodologies apply 75 52T Matters covered by input methodologies 75 52U When input methodologies must be determined 76 52V Commissionprocessfordetermininginputmethodologies 77 52W Publication of input methodologies 77 52X Amendment of input methodologies 78 52Y Review and date of publication of input methodologies 78
Appeals against input methodology determinations
52Z Appeals against input methodology determinations 79 52ZA Process for appeals 80
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53 Input methodology applies pending outcome of appeal 80
Subpart 4—Information disclosure regulation 53A Purpose of information disclosure regulation 81 53B Effect of being subject to information disclosure 81 regulation 53C Section 52P determination to set out information 82 disclosure requirements 53D Consolidated information may also be required 83 53E Charge for providing copies to public 84 53F Limited exception to obligation to apply input 84 methodologies
Subpart 5—Negotiate/arbitrate regulation 53G Purpose of negotiate/arbitrate regulation 85 53H Overview of negotiate/arbitrate regulation 85 53I Section 52P determination to set out requirements for 86 application of negotiate/arbitrate regulation 53J Compulsory arbitration 87
Subpart 6—Default/customised price-quality regulation 53K Purpose of default/customised price-quality regulation 88 53L Overviewofdefault/customisedprice-qualityregulation 88 53M Content and timing of price-quality paths 88 53N Monitoring compliance with price-quality paths 90
53O Section 52P determination to set out requirements of 90 default price-quality paths 53P Resetting starting prices, rates of change, and quality 91 standards
Customised price-quality paths
53Q Supplier may propose customised price-quality path 93 53R Effect of making proposal for customised price-quality 93 path 53S Preliminary assessment of proposal 94 53T Process and timing for assessing proposal 94 53U Extension of time frames 95 53V Determination setting customised price-quality path 95 53W Term of customised price-quality paths 95 53X What happens when customised price-quality path ends 95 53Y Commission’s costs relating to assessing, setting, and 96 reconsidering customised price-quality path
53Z Prioritisation by Commission 97 53ZA What happens if Commission does not make decision 97 within time frame
What happens to price-quality paths if input methodologies change
53ZB Whathappenstoprice-qualitypathsifinputmethodologies 98 change
Subpart 7—Individual price-quality regulation 53ZC Price-quality path for individual businesses 98
Subpart 8—Miscellaneous provisions 53ZD Powers of Commission under this Part 99 53ZE Levies 100 53ZF Material may be incorporated by reference 102 53ZG Power to exempt disclosure of commercially sensitive 102 information
Subpart 9—Electricity lines services
Application, overview, and interpretation
54 Overview of how subpart applies 103 54A Overview of when subpart applies 103 54B Interpretation for subpart 103 54C Meaning of electricity lines services 104 54D Definition of consumer-owned 106
Imposition of regulation under this Part
54E Electricity lines services declared to be regulated 109 54F All electricity lines services are subject to information 110 disclosure regulation 54G Certain electricity lines services are also subject to 110 default/customised price-quality regulation
54H How exempt status can be lost and default/customised 110 price-qualityregulationcanbeappliedtoconsumer-owned suppliers
54I Commission must make section 52P determination 112 specifying how subpart applies 54J Section 52P determinations setting out default 112 price-quality paths applying from 1 April 2009 54K Section 52P determinations setting out default 113 price-quality paths applying from 1 April 2010
54L Administrative settlements made before 1 April 2009 113 (other than with Transpower)
54M Administrative settlements with Transpower made before 114 1 April 2009
54N Breaches of thresholds and default price-quality paths 115 before 1 April 2010
54O Breachesofcontrolimposed,oradministrativesettlements 116 entered into, after 1 April 2009
54P Proposals for customised price-quality paths 116
Transpower grid upgrade plans and capital expenditure proposals
54R Approval of Transpower’s grid upgrade plans 117
54S Commission to prepare input methodology for capital 119 expenditure proposals
54T Procedure before jurisdiction order can be 119 made[Repealed]
54U Levies during transition in jurisdiction[Repealed] 120
Interface with Electricity Industry Act 2010
54V Impact of certain decisions made under Electricity 120 Industry Act 2010
54W Savings provision relating to existing information 121 disclosure requirements
54X Savings provision for existing levy regulations for 122 electricity lines businesses
Subpart 10—Gas pipeline services
55 Overview of subpart 122 55A Meaning of gas pipeline services 123
Imposition of regulation under this Part
55B Gas pipeline services declared to be regulated 124
55C All gas pipeline services are subject to information 124 disclosure regulation
55D All gas pipeline services are subject to price-quality 125 regulation
55E Commission must make section 52P determination 125 specifying how subpart applies 55F Section 52P determinations setting out first default 125 price-quality paths
Services controlled by virtue of Commerce (Control of Natural Gas Services) Order 2005
55G Existing order, authorisations, and undertakings continue 126 to apply until 1 July 2012 (or earlier expiry) 55H How price-quality regulation under this Part applies after 127 1 July 2012 (or earlier expiry)
55I Impact of certain decisions made under Gas Act 1992 128
55J SavingsprovisionuntilCommissionpublishesinformation 129 disclosure requirements
55K Savings provision for existing levy regulations for 129 services controlled under Commerce (Control of Natural Gas Services) Order 2005
56 Overview of subpart 130 56A Meaning of specified airport services 130
Imposition of regulation under this Part
56B Specified airport services declared to be regulated 131 56C Specified airport services are subject to information 131
disclosure regulation 56D Duty to also disclose to Secretary of Transport 132 56E Commission must make determination specifying how 132
How information disclosure regulation applies
56F Transitional provision until Commission publishes 132 information disclosure requirements 56G Transitional provision requiring review after new prices 133
set 57 Commission process[Repealed] 133 57A Technical provisions relating to declaration of 133
control[Repealed] 57B Records to be kept for control purposes[Repealed] 133
57C OtherActsrelatingtopricecontrolnotaffected[Repealed] 133 57CA Impact of certain decisions made under Gas Act 134 1992 [Repealed]
Part 4A Provisions applicable to electricity industry
[Repealed] 57D Interpretation[Repealed] 134 57DAA Meaning of electricity lines business[Repealed] 134 57DAAB Meaning of electricity supply business[Repealed] 134 57DA BodythatexercisesjurisdictionunderthisPart[Repealed] 134 57DB Transfer of jurisdiction in respect of 135 Transpower[Repealed] 57DC Transfer of jurisdiction relating to other large electricity 135 lines businesses[Repealed] 57DD Procedure before jurisdiction order can be 135 made[Repealed] 57DE Levies during transition in jurisdiction[Repealed] 135 57DF Ministerial powers[Repealed] 135
Subpart 1—Controlled goods or services
[Repealed] 57E Purpose[Repealed] 136 57F Commission, not Minister, may declare that goods or 136 services supplied by large electricity lines businesses are controlled[Repealed] 57G Thresholds for declaration of control[Repealed] 136 57GA Incorporation by reference of material in 136 thresholds[Repealed] 57GB Effect of amendments to, or replacement of, material 137 incorporated by reference in thresholds[Repealed] 57GC Amendments to, or replacement of, material incorporated 137 by reference to be of same general character as original material[Repealed] 57GD Proof of material incorporated by reference[Repealed] 137 57GE Effect of expiry of material incorporated by 137 reference[Repealed] 57GF Requirement to consult[Repealed] 137 57GG Accesstomaterialincorporatedbyreference[Repealed] 138 57H Process for making decisions on declaration of 138 control[Repealed] 57I Process before declaration made[Repealed] 138 57J Effect of declaration of control[Repealed] 138
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57K Priorities[Repealed] 138 57L Maximumof5yearsfordurationofdeclaration[Repealed] 138 57M Authorisations and undertakings[Repealed] 139 57MA Impact of certain decisions made under Electricity Act 139
1992[Repealed] 57N Commission may lift control[Repealed] 139
Subpart 2—Transpower’s pricing methodology
57O Commission may be required to authorise Transpower’s 139 pricing methodology[Repealed] 57P Authorisations in respect of Transpower’s pricing 140
methodology[Repealed] 57Q Authorisations and undertakings[Repealed] 140 57R Enforcement of authorisations[Repealed] 140 57S Revocation of authorisations[Repealed] 140
Subpart 3—Information disclosure
[Repealed] 57T Information disclosure[Repealed] 140 57U Information to be supplied to Commerce 140
Commission[Repealed] 57V CommerceCommissiontopublishsummaries[Repealed] 141 57W Reasonable charge may be imposed for providing copies 141
Recalibration of asset values of large electricity line owners [Repealed] 57X Purpose of recalibrations[Repealed] 141 57Y Interpretation[Repealed] 141 57Z Large electricity line owners must supply valuation to 142
Commerce Commission[Repealed] 57ZA Comprehensive audit of asset values of large electricity 142
line owners[Repealed] 57ZB Procedureafterauditofassetvaluescarriedout[Repealed] 142 57ZC Outcome of audit of asset values[Repealed] 142
Review of valuation methodologies [Repealed] 57ZD Review of valuation methodologies[Repealed] 142
57ZE Process when carrying out review of valuation 142 methodologies[Repealed]
[Repealed] 57ZF Powers of Commission[Repealed] 143 57ZG Powers of entry and inspection[Repealed] 143 57ZH Authorised persons to prove identity[Repealed] 143 57ZI Offence to obstruct authorised persons[Repealed] 143 57ZJ Other offences[Repealed] 144 57ZK Levy of electricity lines businesses[Repealed] 144
Part 5 Authorisations and clearances
58 Commission may grant authorisation for restrictive trade 144 practices 58A Effect of authorisation 145 58B Additional provisions relating to authorisations 147 59 Contracts or covenants subject to authorisation not 148 prohibited under certain conditions 59A When Commission may grant authorisation 148 59B Contraventions not prevented by granting of authorisation 149 under section 59 or section 59A 60 Procedure for applications for authorisation of restrictive 149 trade practices 61 Determination of applications for authorisation of 151 restrictive trade practices 62 Commission to prepare draft determination in relation to 153 restrictive trade practices 63 Commission may grant provisional 154 authorisation[Repealed] 64 Procedure at conference 154 65 Commission may vary or revoke authorisations 155
66 Commissionmaygiveclearancesforbusinessacquisitions 156 67 Commission may grant authorisations for business 157 acquisitions 68 Provisions applying to applications for clearances and 159 authorisations for business acquisitions 69 Effect of clearance or authorisation 159 69A Commission may accept undertakings 160
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69AB Authorisation or clearance void if undertaking 160 contravened 69AC Variation of undertaking 160 69B Conferences in relation to business acquisitions 161
Authorisations in respect of controlled goods or services [Repealed]
70 Authorisations in respect of prices, revenues, and quality 162 standards[Repealed] 70A ConsiderationstobeobservedbyCommission[Repealed] 162 70B Procedure for making authorisations[Repealed] 162 70C Remedies and penalties if overcharging or quality 162 standards breached[Repealed] 70D Terms of authorisations[Repealed] 163 70E Investigations and audits[Repealed] 163 70F Revocation and amendment of authorisations[Repealed] 163 71 Provisional authorisations[Repealed] 163 72 Alternative undertakings[Repealed] 163 73 Conferences in relation to authorisations about controlled 163 goods or services[Repealed] 74 Levies[Repealed] 163
Part 6 Enforcement, remedies, and appeals
74AA Cease and desist Commissioners 164 74A Commissioner may make cease and desist orders 165 74B Investigation, notice, and opportunity to be heard 165 74C Procedure at cease and desist hearing 166 74D Pecuniary penalties for contravention of cease and desist 167 order
75 Jurisdiction of High Court 167 76 Jurisdiction of District Courts 169 77 Additional lay members of High Court for purposes 169 of appellate jurisdiction in respect of Commission determinations 78 Lay members of High Court in certain cases 171 79 Evidence not otherwise admissible 173
Proceedings for pecuniary penalties
79A Proceedings for pecuniary penalties 173
79B Relationship between pecuniary penalties and criminal 174 liability
80 Pecuniary penalties 174 80A Bodycorporatenottoindemnifycertainpersonsinrespect 176 of pecuniary penalties 80B Pecuniary penalties for contravention of section 80A 176 80C Court may order certain persons to be excluded from 177 management of body corporate 80D Application for order under section 80C 178 80E Offence to act in contravention of order made under 178 section 80C 81 Injunctions may be granted by court for contravention of 179 Part 2 82 Actions for damages for contravention of Part 2 179 82A Exemplary damages for contravention of Part 2 180
83 Pecuniary penalties 180 84 Injunctions may be granted by court for contravention of 181 Part 3 or undertaking 84A Actions for damages for contravention of Part 3 183 85 Court may order divestiture of assets or shares in respect 184 of contravention of Part 3 85A Pecuniary penalties for contravention of undertaking 184 85B Court may order divestiture of assets or shares in respect 186 of contravention of undertaking 85C Matters court must not take into account under 186 sections 85A and 85B
86 Pecuniarypenaltyforcontraveninginformationdisclosure 187 requirement 86A Order requiring information disclosure requirement to be 188 complied with 86B Offences relating to information disclosure regulation 188 86C Orders where negotiate/arbitrate regulation applies 189 87 Pecuniary penalty for contravening price-quality 189 requirements 87A Compensation for contravention of price-quality 191 requirement 87B Offence relating to price-quality regulation 191
87C Injunction and other orders relating to price-quality 192 regulation
88 General provisions relating to granting of injunctions 192 88A When undertaking as to damages not required by 193 Commission 89 Other orders 194 90 Conduct by servants or agents 195
Appeals from determinations of Commission
91 Appeals in relation to determinations by Commission 196 92 Persons entitled to appeal 197 93 Determination of appeals 198 94 Court may refer appeals back for reconsideration 199 95 Provisions pending determination of appeal 199 96 Court may order proceedings to be heard in private 199 97 Appeal to Court of Appeal in certain cases 200
Part 7 Miscellaneous provisions
98 Commission may require person to supply information or 201 documents or give evidence 98A Power to search 201 98B Powers conferred by warrant 202 98C Warrant to be produced 203 98D Other duties of person who executes a warrant 203 98E Duty to assist 204 98F Power to inspect and take copies of documents, etc 204 98G Commission may exercise powers notwithstanding other 205 proceedings 98H Supply of information and documents in relation to 205 section 36A 99 Powers of Commission to take evidence 206 99A Commission may receive information and documents 207 on behalf of Australian Competition and Consumer Commission 100 Powers of Commission to prohibit disclosure of 207 information, documents, and evidence 100A Commission may state case for opinion of High Court 208 101 Notices 209 102 Service of notices 209 103 Offences 210 104 Determinations of Commission 211
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105 Restriction on delegation 211 106 Proceedings privileged 212 106A Judicial notice 214 107 Annual report[Repealed] 215 108 Regulations 215 109 Commission may prescribe forms 216 110 Repeals, revocations, savings, and consequential 216
amendments 111 Transitional provisions in respect of certain contracts, 217 arrangements, or understandings
112 Transitional provisions in respect of goods and 218 services subject to price control under Commerce Act 1975[Repealed]
113 Transitional provisions in respect of goods and services 218 subject to price restraint under regulations made under Commerce Act 1975[Repealed]
114 Transitional provisions in respect of milk 218 pricing[Repealed] 115 Savings in respect of certain provisions of Commerce 218 Act 1975[Repealed] 116 Winding up of Commerce Commission established under 218 Commerce Act 1975[Repealed]
117 Members of Commerce Commission established 218 under Commerce Act 1975 deemed to be members of Commission[Repealed]
118 Lay members of High Court appointed pursuant to 219 Commerce Act 1975 deemed to be lay members of High Court appointed under this Act[Repealed]
Schedule 1 219 Classes of merger or takeover proposals requiring prior clearance or authorisation by the Commission
Schedule 2 220 Enactments amended
Schedule 3 221 Enactments repealed
Schedule 4 222 Orders and notices revoked
Schedule 5 224 Material incorporated by reference Schedule 6 228 Exemptions from Part 4 in respect of specific pipelines
Title [Repealed]
Title: repealed, on 26 May 2001, by section 3 of the Commerce Amendment Act 2001 (2001 No 32).
[Repealed]
1A Purpose
The purpose of this Act is to promote competition in markets for the long-term benefit of consumers within New Zealand. Section 1A: inserted, on 26 May 2001, by section 4 of the Commerce
Amendment Act 2001 (2001 No 32).
(1) In this Act, unless the context otherwise requires,— accountingperiodhasthesamemeaningasin section2(1) of
theFinancialReportingAct1993,exceptthateveryreference to an entity is a reference to a body corporate acquire,— of gift, purchase, exchange, lease or licence arriveat, in relation toan understanding, includes reach,and enter into
assets includes intangible assets associate member means a member appointed under section 11(1)
authorisationmeansanauthorisationgrantedbytheCommissionunder Part5 ,orbythecourtonappealunder Part6 against a determination of the Commission
Authority means the Electricity Authority established under the Electricit This Act is administered by the Ministry of Economic Development.
1 Short Title and commencement
2 Interpretation