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Commission abandons plan for market power guidelines

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Oct 18 NZPA - The Commerce Commission is no longer developing enforcement guidelines on misuse of market power.

The competition and fair trading regulator was developing guidelines on section 36 of the Commerce Act which deals with preventing companies with substantial market power from using or taking advantage of that market power to deter competition.

It has decided not to go ahead with developing the guidelines after the Supreme Court on September 1 affirmed that the counterfactual test is the sole determinative approach to deciding when a firm has unlawfully used or taken advantage of its dominance under section 36.

The commission lost an appeal in the case which involved Telecom 0867 service. The case was the first opportunity for the Supreme Court to consider and determine the appropriate legal analysis under section 36.

"In light of the Supreme Court's decision in the 0867 case, there is limited value that the commission can currently provide by developing section 36 guidelines," chairman Mark Berry said.

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