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Labour SOP beefs up Commerce Commission powers

Clayton COSGROVE

Commerce Spokesperson

18 February 2014                                                  

MEDIA STATEMENT

Labour SOP beefs up Commerce Commission powers

The Commerce Commission will be given greater scope to protect New Zealand businesses from monopoly behaviour under an amendment lodged by Labour’s Commerce spokesperson Clayton Cosgrove.

“Following recent allegations of concerning monopolistic behaviour it is clearly important that the Commerce Commission possess the ability to successfully prosecute when it sees this occurring,” says Clayton Cosgrove.

“The Commerce Act is intended to prevent monopoly firms wielding their market power to stifle competition. Unfortunately s36 as it stands is focussed on the intent of those involved rather than the effects that their power is having.

“This is about ensuring our small businesses are not adversely affected by the actions of the big end of town.

“Monopolies are escaping a crackdown because purpose and intention is difficult to prove. My supplementary order paper, number 408, to the Commerce (Cartels and other Matters) Amendment Bill will ensure that when market power is wielded, regardless of intent, it can be acted on.

“I have written to Commerce Minister Craig Foss and I hope he will support my SOP in the spirit of bipartisanship that has been a hallmark of our work in Commerce.

“If the National party is genuinely concerned about such behaviour they will not only support my SOP but they will prioritise the Commerce (Cartels and Other Matters) Amendment Bill to ensure that Commerce Commission can effectively prosecute any active investigations,” says Clayton Cosgrove.

Supplementary Order Paper 408 to the Commerce (Cartels and other Matters) Amendment Bill was introduced to the House late last year and is attached.

Supplementary_Order_Paper7.pdf

ENDS

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