65A Commission may give clearances relating to cartel provisions

(1)

A person who proposes to enter into a contract or arrangement, or arrive at an understanding, that contains, or may contain, a cartel provision may apply to the Commission for a clearance under this section.

(2)

The Commission must give a clearance under this section if it is satisfied that—

(a)

the applicant and any other party to the proposed contract, arrangement, or understanding are or will be involved in a collaborative activity; and

(b)

every cartel provision in the contract, arrangement, or understanding is reasonably necessary for the purpose of the collaborative activity; and

(c)

entering into the contract or arrangement, or arriving at the understanding, or giving effect to any provision of the contract, arrangement, or understanding, will not have, or would not be likely to have, the effect of substantially lessening competition in a market.

(3)

For the purpose of subsection (2), it is not necessary for the Commission to determine whether a particular provision is in fact a cartel provision, providing there are reasonable grounds for believing it might be.

(4)

If clearance is not given within 30 working days after the date on which the application is registered in accordance with section 60(2)(a), the Commission is deemed to have declined to give the clearance, subject to any alternative timetable agreed between the Commission and the person applying for clearance.

Section 65A: inserted, on 15 August 2017, by section 17 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).