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​New Zealand regulator supports Australian-style 'effects' test on misuse of market power

( October 28, 2019, 02:10 GMT | Official Statement) -- MLex Summary: New Zealand should embrace a “purpose or effects” test for the misuse of market power by companies, similar to the one adopted by Australia in 2017, New Zealand’s competition watchdog said in a submission to a government review. According to the Commerce Commission, the government review of Section 36 of New Zealand’s 1986 Commerce Act is correct to focus on the shortcomings of existing legislation in tackling companies using their market power to stifle competition. “We support a move towards a [substantial lessening of competition] test that focuses on the purpose, effect or likely effect of conduct,” the submission says, arguing that the existing wording, which focuses on the purpose rather than the effect of anticompetitive conduct, needs to be changed. In 2017, Australia broadened its misuse-of-market-power laws to include the effects of competition behavior, rather than just the purpose.The Commerce Commission's submission is attached. ...

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