Appendix 2: Commerce Commission

270. Quota aggregation of 45% permitted under the Act does not preclude the Commerce Commission (the Commission) investigating market issues.
     
271. The Commission, in it its merger guidelines, defines ‘safe harbours’ that reflect a market position in which dominance is not likely to be created or strengthened following a merger or acquisition. Therefore, should an entity fall within a ‘safe harbour’, it would generally not attract the attention of the Commission. ‘Safe harbours’ exist when an entity controls less than 40% of the market, or if the entity controls less than 60% of the market, but at least one other participant controls 15% of the market. The ‘safe harbour’ test does not determine unacceptable levels of market power, but merely the trigger for further examination.
     
272. The Commission is an arms-length compliance organisation established to protect the competitive process, not individual competitors. The Commerce Act 1986 examines the degree of competition in the market, and does not address how a practice or industry structure may adversely affect a particular competitor.