New Zealand Acts

COMMERCE ACT 1986 - SECT 3

3 Certain terms defined in relation to competition

1 In this Act,
"competition" means workable or effective competition.

1A Every reference in this Act, except in section 36A , to the term
"market" is a reference to a market in New Zealand for goods or services as well as other goods or services that, as a matter of fact and commercial common sense, are substitutable for them.

1B

1C

2 In this Act, unless the context otherwise requires, references to the
"lessening of competition" include references to the hindering or preventing of competition.

3 For the purposes of this Act, the effect on competition in a market shall be determined by reference to all factors that affect competition in that market including competition from goods or services supplied or likely to be supplied by persons not resident or not carrying on business in New Zealand.

4 In sections 27 and 28 , a reference to a
"market" in relation to the purpose or effect in respect of competition of a provision of a contract, arrangement, or understanding, or of a covenant, or of conduct, shall be read as including a reference to—

a) a market in which a person who is a party to the contract, arrangement, or understanding, or any interconnected body corporate, or, as the case may be, the person or any associated person (within the meaning of section 28(7) ) who requires the giving of, or gives the covenant, supplies or acquires or is likely to supply or acquire, or would, but for that provision, covenant, or conduct, supply or acquire or be likely to supply or acquire goods or services; and

b) any other market in which those goods or services may be supplied or acquired.

5 For the purposes of section 27 , a provision of a contract, arrangement, or understanding shall be deemed to have or to be likely to have the effect of substantially lessening competition in a market if that provision and—

a) the other provisions of that contract, arrangement, or understanding; or

b) the provisions of any other contract, arrangement, or understanding to which that person or any interconnected body corporate is a party—

taken together, have or are likely to have the effect of substantially lessening competition in that market.

6 For the purposes of section 28 , a covenant shall be deemed to have or to be likely to have the effect of substantially lessening competition in a market if—

a) that covenant; and

b) any other covenant to the benefit of which that person or an associated person (within the meaning of section 28(7) ) is entitled or would be entitled if the covenant were enforceable—

taken together, have or are likely to have the effect of substantially lessening competition in that market.

7 For the purposes of sections 27, 28, 36, and 36A , the engaging in conduct shall be deemed to have or to be likely to have the effect of substantially lessening competition in a market if—

a) the engaging in that conduct; and

b) the engaging by that person in conduct of the same or a similar kind—

taken together, have or are likely to have the effect of substantially lessening competition in that market.

8

9

Note: Trade Practices Act 1974 ss 4, 4E, 4G, 45(3), (4), 45B(4), 46 (Aust)

History: Section 3(1): substituted, on 1 July 1990, by section 3(1) of the Commerce Amendment Act 1990 (1990 No 41).   Section 3(1): amended, on 15 August 2017, by section 32(2)(d) of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).     Section 3(1A): inserted, on 1 July 1990, by section 3(1) of the Commerce Amendment Act 1990 (1990 No 41).     Section 3(1A): amended, on 5 April 2023, by section 5(1) of the Commerce Amendment Act 2022 (2022 No 11).     Section 3(1B): repealed, on 5 April 2023, by section 5(2) of the Commerce Amendment Act 2022 (2022 No 11).     Section 3(1C): repealed, on 5 April 2023, by section 5(2) of the Commerce Amendment Act 2022 (2022 No 11).     Section 3(7): amended, on 5 April 2023, by section 5(3) of the Commerce Amendment Act 2022 (2022 No 11).     Section 3(8): repealed, on 26 May 2001, by section 9(4) of the Commerce Amendment Act 2001 (2001 No 32).     Section 3(9): repealed, on 26 May 2001, by section 11(3) of the Commerce Amendment Act 2001 (2001 No 32).