Commonwealth Numbered Acts

TRADE PRACTICES AMENDMENT ACT 1977 No. 81 of 1977 - SECT 27

27. Section 50 of the Principal Act is repealed and the following section
substituted:- Mergers.
''50. (1) A corporation shall not acquire, directly or indirectly, any shares
in the capital, or any assets, of a body corporate if-

   (a)  as a result of the acquisition, the corporation would be, or be likely
        to be, in a position to control or dominate a market for
        goods or services; or

   (b)  in a case where the corporation is in a position to control or
        dominate a market for goods or services-

        (i)    the body corporate or another body corporate that is related to
               that body corporate is, or is likely to be, a competitor of the
               corporation or of a body corporate that is related to the
               corporation; and

        (ii)   the acquisition would, or would be likely to, substantially
               strengthen the power of the corporation to control or dominate
               that market.

''(2) If-

   (a)  a body corporate that is related to a corporation is, or two or more
        bodies corporate each of which is related to the one corporation
        together are, in a position to control or dominate a market for
        goods or services; or

   (b)  a corporation, and a body corporate that is, or two or more bodies
        corporate each of which is, related to that corporation, together are
        in a position to control or dominate a market for goods or services,
        the corporation shall be deemed for the purposes of this section to be
        in a position to control or dominate that market.

''(3) In this section-

   (a)  a reference to a market for goods or services shall be construed as a
        reference to a substantial market for goods or services in Australia
        or in a State; and

   (b)  a reference to controlling or dominating a market for
        goods or services shall be construed as a reference to controlling or
        dominating such a market either as a supplier or as an acquirer of
        goods or services in that market.

''(4) Where-

   (a)  a corporation has entered into a contract to acquire shares in the
        capital, or assets, of a body corporate;

   (b)  the contract is subject to a condition that the provisions of the
        contract relating to the acquisition will not come into force unless
        and until the corporation has been granted an authorization to acquire
        the shares or assets; and

   (c)  the corporation applied for the grant of such an authorization before
        the expiration of 14 days after the contract was entered into, the
        acquisition of the shares or assets shall not be regarded for the
        purposes of this Act as having taken place in pursuance of the
        contract before-

   (d)  the application for the authorization is disposed of; or

   (e)  the contract ceases to be subject to the condition, whichever first
        happens.

''(5) For the purposes of sub-section (4), an application for an authorization
shall be taken to be disposed of-

   (a)  in a case to which paragraph (b) of this sub-section does not apply-at
        the expiration of 14 days after the period in which an application may
        be made to the Tribunal for a review of the determination by the
        Commission of the application for the authorization; or

   (b)  if an application is made to the Tribunal for a review of the
        determination by the Commission of the application for the
        authorization-at the expiration of 14 days after the date of the
        making by the Tribunal of a determination on the review.''.