19 September 2001 Media Statement

Court Of Appeal Decision Re Progressive Enterprises Limited

"This morning the Court of Appeal overturned the previous decision of the High Court about the proposed acquisition of Woolworths NZ by Progressive Enterprises Ltd" Hon Paul Swain, Minister of Commerce, said today.

Progressive's application for a clearance by the Commerce Commission to buy Woolworths was made before amendments to section 47 of the Commerce Act came into force earlier this year. The Commission considered this application under the old test where business acquisitions had to pass a market dominance test. However, clearance was granted after the new test had become law. The new test is whether the acquisition will substantially lessen competition.

The High Court found that the Commission was correct in applying the old market dominance test under section 47 of the Commerce Act when it assessed the application for clearance from Progressive to acquire Woolworths. However the Court of Appeal has today overturned that decision.

"This decision has implications for a number of businesses, implications which the government is now carefully considering" Mr Swain said.

Mr Swain said that he understood that the Commission may be seeking further direction from the Court as to the effect of this decision on the clearances that have already been granted.

Ends

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Gordon Campbell: On the Sony cyber attack

Given the layers of meta-irony involved, the saga of the Sony cyber attack seemed at the outset more like a snarky European art film than a popcorn entry at the multiplex.

Yet now with (a) President Barack Obama weighing in on the side of artistic freedom and calling for the US to make a ‘proportionate response’quickly followed by (b) North Korea’s entire Internet service going down, and with both these events being followed by (c) Sony deciding to backtrack and release The Interview film that had made it a target for the dastardly North Koreans in the first place, then ay caramba…the whole world will now be watching how this affair pans out. More>>