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Commerce Commission appeals 0867 High Court judgmt

Commerce Commission appeals 0867 High Court judgment

The Commerce Commission will appeal a judgment by the High Court in Auckland in the long-running case against Telecom Corporation of New Zealand Limited (Telecom).

The Commerce Commission alleged Telecom contravened section 36 of the Commerce Act 1986, when it introduced its 0867 package in 1999. Last month the High Court found that Telecom did not use its dominant position in the market for fixed line retail telephone services to residential customers or have an anti-competitive purpose when it introduced the 0867 package, so did not contravene section 36.

The Commission considers it important to appeal the decision. The issues raised by the case impacted significantly on competitive behaviour in the telecommunications market and the case raises crucial legal issues relating to the application of section 36 of the Commerce Act. These issues are not only relevant for this case, but also for future section 36 cases. Clarification of the legal issues to be raised on appeal will benefit the development of competition law generally.

There will be no further comment while the matter is before the courts.


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