Competition Law Report Chazam

1. Introduction:

Chazam Executives and Staff,

Due to the recent fine consequential of a breach in the Commerce Act 1986 (the Act), it is in the best interests of this company to educate staff in the area of competition law – governed by the Act. The goal of this report is to educate staff to a level at which they can make prudent decisions relating to competition law in their own and Chazam’s best interests.

This report should help assist in understanding the Commerce Act and the role of the New Zealand Commerce Commission (NZCC). It will bring attention to the main practices prohibited by the Act, their associated penalties.

Most importantly it will assist staff in keeping Chazam’s competition honest.

2. The commerce act 1986:

The Commerce act 1986 is the act that governs competition law. It was introduced to “to promote competition in markets for the long term benefit of consumers within New Zealand” S1A .

The Act prohibits certain conduct and business arrangements that have the purpose or effect of lessening competition within New Zealand. A provision in the Act regards ‘restrictive trade practices’ and relates to how businesses compete with one another. Another provision regulates business acquisitions. The Commerce Commission is the official body that oversees conformity with the Act.

The Act applies to all individuals and businesses, including state-owned enterprises, local government and government departments, which engage in trade It also applies to actions outside New Zealand if they are carried out by a person resident in NZ S4(1) and a similar provision relates to acquisitions outside the country if it affects a New Zealand market S 4(3). Therefore if Chazam runs any operations overseas the staff involved should be aware of this report as it will apply to them also.

3. The Commerce Commission:

The purpose of the New Zealand Commerce Commission (NZCC) is to “promote market efficiency by fostering healthy...