Statement of Preliminary Issues and timetable for Fonterra's authorisation application
7 October 2011
The Commerce Commission has published a statement of preliminary issues relating to an application received from Fonterra Co-operative Group Limited seeking authorisation for an agreement that it considers may be anti-competitive.
Fonterra has formed a limited partnership with Silver Fern Farms Limited to create Kotahi Logistics with the intent to coordinate freight services.
The statement of preliminary issues outlines the key competition issues that the Commission currently considers will be important in deciding whether or not to grant authorisation. The statement of preliminary issues and the public version of the application are available on the Commission's website at: www.comcom.govt.nz/fonterra-co-operative-group-restrictive-trade-practice-application
As part of considering Fonterra's application, the Commission will be seeking comment from interested parties. Comment will be sought through face to face interviews, written submissions and possibly a public conference.
Interested parties are invited to make submissions on Fonterra's application for authorisation. Submissions should be sent to the Registrar, at firstname.lastname@example.org with the reference Kotahi in the subject line of your email, or to The Registrar, PO Box 2351, Wellington 6140. Deadline for submissions is 4pm on Thursday 3 November 2011.
The Commission may grant authorisations with respect to practices considered to be in breach of the restrictive trade practice provisions under section 58 of the Commerce Act (except sections 36 and 36a which involve taking advantage of market power in New Zealand and/or Australian markets) if it is satisfied that the public benefits of the practice outweigh the detriments arising from the loss of competition.
A business can apply to the Commission for an authorisation, and the Commerce Act sets out the procedures for such applications.
The granting of a restrictive trade practice (market behaviour) authorisation protects the applicant from court action under the Commerce Act by the Commission and private individuals.