Ask the Commerce Commission to investigate monopoly in NZ
As most of us are aware, there is a business monopoly that has occurred in New Zealand regarding an online adult advertising directory. We can see the impact that this is having on independent advertisers, agencies, and fellow directories. We think the time has come to make a change.
Marketing/advertising is a way to grow your business, this should not be limited to one website. Being able to freely advertise where you wish, when you wish is a business right and should not be taken away.
We have asked the Commerce Commission to investigate this monopoly for anti-competitive practices, and as part of their initial inquiry, they have asked us to provide evidence on how this is affecting the community, so I am asking you for your help.
The signing of the petition will signify how many people are affected by this monopoly. If you would like to send through any documentation or perhaps a statement that can be collated with existing evidence then we implore you to do so. Please send through to firstname.lastname@example.org
If you do not feel comfortable signing this petition you can still show your support by simply emailing us at email@example.com
I will detail below the sections of the Commerce Act 1986 – Anti-competitive practices, that I feel warrant investigation.
It prohibits anti-competitive agreements between businesses such as agreements to fix prices or to carve up markets. It also makes it illegal for companies to abuse a dominant market position. Consumers and businesses can end up paying higher prices or having reduced choice of goods or services as a result of such agreements.
What is illegal?
Coordinated conduct includes:
- Agreements that substantially lessen competition in a market
- Agreements that exclude or limit dealings with a rival
- Agreements that fix, maintain or control prices (also known as cartels).
Unilateral conduct includes:
- A person or business taking advantage of their dominant position in a market for an anti-competitive purpose
Section 27 covers many types of agreements, including formal and informal agreements, agreements between competitors, and agreements between suppliers and customers. It is illegal both to reach an anti-competitive agreement and to put such an agreement into effect. Even attempting to come to such an agreement can break the law. It also doesn’t matter whether an agreement is deliberately anti-competitive – if it substantially lessens competition, it will be illegal.
Section 36 – A business will break the law if it has a substantial degree of market power, takes advantage of that power and has an anti-competitive purpose. It is not illegal for a business to have a substantial degree of market power. But taking advantage of that market power to harm competition is illegal.
I’m sure there may be other areas of the Act that apply to this situation, please let me know as I will include these areas in the cover letter that I submit.
How you wish to promote your service is your choice, it’s your choice to grow your business in any direction you wish, as a community we can make a difference.
To sign the petition you can use this link to be taken straight to the page.
Our cause made it into the media! Emma Hatton from RNZ has been instrumental in making this possible. She stumbled upon our petition and contacted us for information. Let’s see what happens after this!
There will be a written piece that will come out later today and I will load the link or the article here.