New Zealand Case Law: Decisions & Judgments

Topic

Clearance

Legal area

Court

31 Jan 2008

WOOLWORTHS LIMITED AND ORS V THE COMMERCE COMMISSION HC WN CIV 2007-485-1255

Citation

openlaw-0d7dd3a1_af0b_41e0_8d21_70fa70ee44d4.pdf
Court

High Court

The High Court granted the Commission leave to appeal because the proposed grounds raised questions of law or general importance (notably the treatment of markets 'in flux' and admissible evidence on rehearing) and the appeal was important to the Commission; leave was conditional on urgent prosecution. The Court declined to suspend the clearances because adequate, proportionate safeguards existed (undertakings by Woolworths and Foodstuffs not to complete the acquisition by the specified date) and the Commission had not shown the appeal would be rendered nugatory absent suspension; the Court d…
29 Nov 2007

WOOLWORTHS LIMITED V FOODSTUFFS (AUCKLAND) LIMITED; FOODSTUFFS (SOUTH ISLAND) LIMITED; FOODSTUFFS (WELLINGTON) CO-OPERATIVE SOCIETY LIMITED ("FOODSTUFFS") AND ORS HC WN CIV 2007-485-1255

Citation

openlaw-9389d5ea_a1ac_4613_b538_1df1dbe894fc.pdf
Court

High Court

On the evidence the Warehouse Extra was unlikely to roll out and establish the halo effect necessary to become a material competitive constraint; supermarkets operate in a low‑margin/high‑turnover sector where price rises above roughly 2% would be cause for concern; applying counterfactual analysis the Court found no real and substantial prospect that the independent Warehouse Extra would materially constrain Woolworths and Foodstuffs, so acquisition by either would not be likely to substantially lessen competition—appeals allowed and clearances granted.

New Zealand Case Law

WOOLWORTHS LIMITED AND ORS V THE COMMERCE COMMISSION HC WN CIV 2007-485-1255

WOOLWORTHS LIMITED V FOODSTUFFS (AUCKLAND) LIMITED; FOODSTUFFS (SOUTH ISLAND) LIMITED; FOODSTUFFS (WELLINGTON) CO-OPERATIVE SOCIETY LIMITED ("FOODSTUFFS") AND ORS HC WN CIV 2007-485-1255