This Supplementary Order Paper proposes amendments to the Commerce (Cartels and Other Matters) Amendment Bill (the Bill). The main amendments proposed by this SOP are as follows:

• the repeal of section 4(3) of the Commerce Act 1986 (the Act). This provision says that section 47 of the Act (which prohibits certain acquisitions) extends to certain acquisitions outside New Zealand to the extent that the acquisition affects a market in New Zealand. This provision is no longer necessary in light of new section 47A:

• the replacement of new section 47A(2) to clarify the High Court’s declaration power in relation to overseas acquisitions. It clarifies the connection between the acquisition of assets or shares, the acquisition of a controlling interest, and the assessment of when there is a lessening of competition in a market in New Zealand:

• the addition of a further paragraph in the definition of controlling interest in new section 47A(4), to reflect the fact that a controlling interest in a body corporate can be acquired through the acquisition of assets:

• the addition of a fine (of up to $500,000) as the penalty for an individual convicted of the cartel offence in new section 82B:

• the amendment of the regulation-making power in section 108 relating to refunds of fees paid to the Commerce Commission, so that refunds can be given for fees paid in relation to both authorisations and clearances, and not just for authorisations, as at present:

• a consequential amendment to the regulation-making power in relation to refunds and exemptions, so that applications for clearances under new section 65A are treated in the same way as applications for clearances under section 58.

In addition, the SOP proposes various minor corrections, and makes adjustments that are necessary for consistency with the Criminal Procedure Act 2011, which has come into force since the Bill was considered by the Commerce Committee.