Competition bodies agree on protocol for dealing with mergers

New Zealand and Australia's competition watchdogs have agreed on a protocol for dealing with merger applications.

The agreement, which takes effect from today, is designed to improve merger reviews, particularly trans-Tasman ones.

Paula Rebstock, the Commerce Commission's chairwoman, and Graeme Samuel, chairman of the Australian Competition and Consumer Commission (ACCC), say the arrangement will increase competition law effectiveness in both countries.

"The protocol is consistent with both governments' shared objective of streamlining the trans-Tasman business environment."

They said in a statement that it would also "reduce compliance costs for businesses, and save taxpayers money by reducing the costs of making merger decisions".

The protocol will be used when the two bodies review the same merger transaction, or exchange information for use in a merger review being conducted by either agency.

The two groups believe closer co-operation could be useful particularly for tackling cartels, and regulating energy and telecommunication sectors.

- NZPA