Tuesday, 19 April 2016

A hypothetical question

Suppose an overseas supplier of video on demand services is annoyed that customers in other countries are using Virtual Private Networks (VPNs) to access its domestic catalogue. Those customers are perfectly happy to pay the supplier's domestic pricing, and they're doing so because the supplier's service in their own countries is limited and/or more expensive.

Suppose now that the overseas supplier gets together with (say) credit card companies, and together they agree that the card companies will not process the customers' payments to the VPN companies.

If any of this were to affect New Zealand customers, do you think it would be "a contract or arrangement ... containing a provision that has the purpose, or has or is likely to have the effect, of substantially lessening competition in a market"?

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Hi - sorry about the Captcha step for real people like yourself commenting, it's to baffle the bots