Collaboration between NGOs and the Commerce Act
Health and Disability NGO Sector-MoH Forum
18 April 2013
Lesley Cornish, Health Advocacy Project Manager
Nicky Beechey, Chief Advisor, Advocacy & Development
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Health advocacy project
• raising awareness of competition
and consumer law in health sector
• educative role
• fact sheets, presentations, articles
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What are we going to cover?
• Who are we?
• What is illegal?
• How to collaborate safely?
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Why promote competition?
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What kind of agreements are illegal?
Substantially
Lessen
Competition
...in a market in New Zealand
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Agreements that SLC
• agreement
• between any parties
• often restrictive in nature
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How do you work that out?
• What market are you in?
• Who are your competitors?
• How hard/easy is it for new players to
enter the market?
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Agreements that fix prices
• may directly fix prices
• or influence prices:
o bid
rigging
o market sharing
o output restrictions
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Collaboration – what is safe?
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What is your purpose?
•
•
•
•
extend services?
greater ability to compete?
enter new markets?
compete strongly and
increase choice?
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Is it anti-competitive?
•
•
•
•
•
limit competition?
reduce number of bidders?
reduce choice?
raise prices?
reduce output to harm competition?
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Too cautious or too brave?
•legitimate collaboration
opportunity missed
•competition chilled
•create value
•innovative/nimble
•efficiencies
•purpose and outcome procompetitive
•well-advised
•don’t understand risks
before entering agreements
•don’t take advice
•risk investigation and
prosecution
•risk reputational damage,
penalties, lost time and
inconvenience
Don’t understand the law
Pro-competitive zone
Don’t understand the law
Too cautious
Pro-competitive zone
Too brave
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Mergers
•
•
•
•
voluntary regime
can apply for clearance
what is the market?
will merger SLC?
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Authorisations
Where a merger or agreement may result in a
Lessening of
Competition
…but has net benefits
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Proposed amendments
• collaborative activity exempt from price fixing rule
• “reasonably necessary for the purpose of the collaborative
activity”
• clearance regime – must be satisfied that provision was
reasonably necessary and no SLC
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Final health check
• What is the purpose of your collaboration?
• Who are your competitors?
• Collaborate with competitors no more than necessary.
• Make sure your behaviour reflects your agreement.
• If in doubt, seek legal advice.
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Contact us
CALL
the Contact centre on 0800 943 600
WRITE
Contact Centre, PO Box 2351, Wellington 6140
EMAIL
[email protected]
[email protected]
[email protected]
VISIT
www.comcom.govt.nz
SUBSCRIBE
www.comcom.govt.nz/subscribe
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