Document ID: chunk:federal_register_of_legislation:C2004A04938:body:0:p70
Version: federal_register_of_legislation:C2004A04938
Segment Type: other
Provision Reference: 
Character Range: 179270–182040

price maintenance

48. A person shall not engage in the practice of resale price maintenance.

Prohibition of acquisitions that would result in a substantial lessening of competition

50.(1) A person must not directly or indirectly:

    (a) acquire shares in the capital of a body corporate; or

    (b) acquire any assets of a person;

if the acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in a market.

(3) Without limiting the matters that may be taken into account for the purposes of subsection (1) in determining whether the acquisition would have the effect, or be likely to have the effect, of substantially lessening competition in a market, the following matters must be taken into account:

    (a) the actual and potential level of import competition in the market;

    (b) the height of barriers to entry to the market;

    (c) the level of concentration in the market;

SCHEDULE 1—continued

    (d) the degree of countervailing power in the market;

    (e) the likelihood that the acquisition would result in the acquirer being able to significantly and sustainably increase prices or profit margins;

    (f) the extent to which substitutes are available in the market or are likely to be available in the market;

    (g) the dynamic characteristics of the market, including growth, innovation and product differentiation;

    (h) the likelihood that the acquisition would result in the removal from the market of a vigorous and effective competitor;

    (i) the nature and extent of vertical integration in the market.

(4) Where:

    (a) a person has entered into a contract to acquire shares in the capital of a body corporate or assets of a person;

    (b) the contract is subject to a condition that the provisions of the contract relating to the acquisition will not come into force unless and until the person has been granted an authorization to acquire the shares or assets; and

    (c) the person applied for the grant of such an authorization before the expiration of 14 days after the contract was entered into;

the acquisition of the shares or assets shall not be regarded for the purposes of this Act as having taken place in pursuance of the contract before:

    (d) the application for the authorization is disposed of; or

    (e) the contract ceases to be subject to the condition;

whichever first happens.

(5) For the purposes of subsection (4), an application for an authorization shall be taken to be disposed of:

    (a) in a case to which paragraph (b) of this subsection does not apply—at the expiration of 14 days after the period in which an application may be made to the Tribunal for a review of the determination by the Commission of the application