COMMERCE COMMISSION v PGG WRIGHTSON LTD & OR [2017] NZHC 2584

COMMERCE COMMISSION v PGG WRIGHTSON LTD & OR [2017] NZHC 2584

Elders admitted entering into and giving effect to three industry agreements (tagging fee, RFID administration fee and yard fee) which had the purpose, effect or likely effect of substantially lessening competition in the market for stock and station agent services, thereby contravening s27 via s30 of the Commerce Act 1986; a declaratory judgment was appropriate because Elders admitted the breach, the declaration served public interest objectives (education, deterrence, parity) and Elders lacked assets for a pecuniary penalty.

Citation
[2017] NZHC 2584
Parties
Plaintiff: Commerce Commission; First Defendant (discontinued): PGG Wrightson Limited; Second Defendant: Elders Rural Holdings Limited
Court
High Court
Jurisdiction
New Zealand
Judgment Date
24 October 2017
Procedural Posture
Competition/antitrust (commerce Act S27 Via S30) / Hearing and Judgment on Agreed Facts — Declaratory Relief Granted
Outcome
Declaration granted that between April 2011 and July 2014 Elders Rural Holdings Ltd entered into and gave effect to three anti-competitive agreements and thereby breached s27, via s30, of the Commerce Act 1986
Legal Topics
Anti Competitive Agreements, Section 27 Commerce Act, Declaratory Relief, Deterrence and Public Interest
Competition Law Remedies Administrative Law Anti Competitive Agreements Section 27 Commerce Act Declaratory Relief Deterrence and Public Interest

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Parties

Commerce Commission

Plaintiff

PGG Wrightson Limited

First Defendant (discontinued)

Elders Rural Holdings Limited

Second Defendant

Procedural Posture

Competition/antitrust (commerce Act S27 Via S30) / Hearing and Judgment on Agreed Facts — Declaratory Relief Granted

Legal Issues

  1. 1 Whether Elders entered into and gave effect to anti-competitive agreements in breach of s27 via s30
  2. 2 Whether a declaratory judgment should be granted where defendant is insolvent and supports declaration
  3. 3 Public interest, deterrence and parity with other defendants

Ratio Decidendi

Elders admitted entering into and giving effect to three industry agreements (tagging fee, RFID administration fee and yard fee) which had the purpose, effect or likely effect of substantially lessening competition in the market for stock and station agent services, thereby contravening s27 via s30 of the Commerce Act 1986; a declaratory judgment was appropriate because Elders admitted the breach, the declaration served public interest objectives (education, deterrence, parity) and Elders lacked assets for a pecuniary penalty.

Court Disposition

Declaration granted that between April 2011 and July 2014 Elders Rural Holdings Ltd entered into and gave effect to three anti-competitive agreements and thereby breached s27, via s30, of the Commerce Act 1986

Orders

  • Declaration: That between April 2011 and July 2014 Elders Rural Holdings Ltd entered into and gave effect to three anti-competitive agreements and, by that conduct, breached s27, via s30, of the Commerce Act 1986.
  • No order as to costs; costs to lie where they fall.