A dominant position is defined as one in which a business is in a position to exercise a dominant influence over the production, purchase, price or supply of goods or services in a market having regard to specified factors. An express principal exception to the above prohibitions is where the acquisition merely involves transferring an existing dominant market position from one party to another, with no strengthening of dominance. The Commerce Act provides a mechanism for seeking clearance from the Commerce Commission, prior to implementation, that a business acquisition will not result in an acquisition or strengthening of dominance.
Authorisation is a formal and public process.
The onus is on the parties seeking the clearance or authorisation. The following practices are prohibited. Any contracts or agreements which are likely to have the effect of substantially reducing competition in a market. Collective boycotts between competitors which prevent or restrict trade. Resale price maintenance arrangements by which suppliers of goods set and enforce sale prices to be charged by re-sellers.