Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Regulator faces slippery questions in X-rated inquiry

Commerce Commission faces slippery questions in X-rated inquiry

By Pattrick Smellie

June 11 (BusinessDesk) - Consenting adults they may be at the Commerce Commission, since they give consent to merger and acquisition proposals as long as they don't harm competition.

But rarely has this normally straight-laced organ of state been asked to handle as slippery a problem as the proposed acquisition of Johnson & Johnson's KY jelly brand of personal lubricant by Reckitt Benckiser, owners of the Durex range of adult lubricants.

Such is the greasy pole of competitive retailing, however, it seems the commission will need to consider dominance issues that could arise if the makers of the Durex range, described as being "positioned at the playful or adventurous end of the spectrum", were also to own the KY range, which Reckitt says is positioned at the "basic reassurance or medical end of the spectrum."

"Reckitt Benckiser states that personal lubricant products are differentiated by reference to a range of factors, including base ingredient (e.g., water or silicone based), functional attributes, end-use, flavour and target customer base," says the commission statement of preliminary issues. "While most suppliers of personal lubricants produce a range of differentiated lubricant products, Reckitt Benckiser submits that there is substitutability along the spectrum such that they fall within a single New Zealand market for the supply of personal lubricants."

And while supermarkets only stock three lubricant brands, the two under consideration and Ansell, "pharmacies, adult retailers and online shops stock a wider range of personal lubricant brands" and that sex shop and online sales are growing, with customers able to swap smoothly between various options.

"Reckitt Benckiser submits that, post-acquisition, many strong and effective existing competitors would remain and could easily expand," the summary says.

Tragically for the commission and hilariously for juvenile news reports of this potential source of competitive friction, the four page statement of preliminary issues also proposes to "assess the horizontal effects that might arise as a result of this acquisition."

A decision is expected by July 17.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Our Fresh Water: Monitoring Report Confirms Serious Challenges For Rivers

• nitrogen levels are getting worse at 55 percent and getting better at 28 percent of monitored river sites across New Zealand • phosphorus levels are getting better at 42 percent and getting worse at 25 percent of monitored river sites across New Zealand More>>

ALSO:

Stats: Wind And Geothermal Emerge As Significant Sources Of Energy

Geothermal’s contribution to New Zealand’s total renewable energy generation increased from 11.5 percent in 2007 to 21 percent in 2015.... The value of wind jumped from $238 million (2 percent of total renewable energy generation) in 2007 to $884 million (6 percent) in 2015. More>>

Errors Found: Electricity Authority Dumps Transmission Pricing Modelling

The Electricity Authority is ditching the cost-benefit analysis at the heart of its controversial attempt to find a new way to divide up costs for the national grid after finding an expanding range of serious computational errors in the work by Australian consultancy Oakley Greenwood. More>>

ALSO:

New Record: Migrant Arrivals At 129,500 A Year

Annual net migration has been steadily increasing since 2012. "This was mainly due to the rising number of migrant arrivals to New Zealand," population statistics senior manager Peter Dolan said. "Fewer migrant departures also contributed to the increase in net migration." More>>

ALSO:

Launched: NASA's Super Pressure Balloon Takes Flight From NZ

NASA successfully launched its football-stadium-sized, heavy-lift super pressure balloon (SPB) from Wanaka, New Zealand, at10:50 a.m. Tuesday, April 25 (6:50 p.m. April 24 in U.S. Eastern Time), on a mission designed to run 100 or more days floating at 110,000 feet (33.5 km) about the globe in the southern hemisphere's mid-latitude band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news