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Telecommunications Act 2001

Structural separation of Telecom - Line of business restrictions

69U: Application of line of business restrictions to related parties of Chorus

You could also call this:

"Rules for companies connected to Chorus"

Illustration for Telecommunications Act 2001

You need to know when people are related to each other under this law. This happens if they work together or one person does what the other person wants. They can also be related if they are companies that own each other, or if one person can control what the other person does. You are related to another person if you are companies that are connected, as explained in section 2(3) of the Companies Act 1993. Being a director of a company does not make you related to that company. You are not related just because you sell things to each other or compete in the same market. If Chorus and Spark share things like assets or services, you must ignore this when working out if they are related. This is unless they have an agreement that they have told the Commission about, as explained in section 69F(1)(a) or (b)(ii). If a related party of Chorus is involved in supplying a telecommunications service, Chorus is considered to be involved too, as explained in section 69O. If someone breaks the rules, they must fix the problem first. This is the order of responsibility for fixing breaches, to the extent that it is practical.

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Topics:
Business > Industry rulesMoney and consumer rights > Consumer protection
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69T: Enforcement of breaches of sections 69O and 69S, or

"What happens if Chorus breaks the rules about supplying telecommunications services"

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69V: Injunctions may be granted by High Court for certain contraventions, or

"The High Court can stop people breaking rules if asked by the Commission."

Part 2AStructural separation of Telecom
Line of business restrictions

69UApplication of line of business restrictions to related parties of Chorus

  1. The test for related parties in this Part is that a person is related to another person if—

  2. they are acting jointly or in concert; or
    1. either person acts, or is accustomed to act, in accordance with the wishes of the other person; or
      1. they are related companies within the meaning of section 2(3) of the Companies Act 1993; or
        1. either person is able, directly or indirectly, to exert a substantial degree of influence over the activities of the other; or
          1. they are both, directly or indirectly, under the control of the same person.

            1. However, for the purposes of subsection (1),—

            2. a director of a company or other body corporate is not related to that company or body corporate merely because he or she is a director of that company or body corporate; and
              1. a person is not able to exert a substantial degree of influence over another person merely because—
                1. those persons are in competition in the same market; or
                  1. one of them supplies goods or services to the other.

                  2. Any sharing of assets, services, and systems between Chorus and Spark must be disregarded for the purposes of applying subsection (1) to the extent that it is provided for in a sharing arrangement of which a copy has been provided to the Commission under section 69F(1)(a) or (b)(ii).

                  3. Without limiting section 69O, Chorus is deemed to participate in the supply of a telecommunications service if a related party of Chorus participates in the supply of the telecommunications service.

                  4. The order of responsibility for remedying breaches is, to the extent practical, that the breach must be remedied first by the party whose activity resulted in the breach.

                  Compare
                  Notes
                  • Section 69U: substituted, on (being the date of separation day, and an Order in Council (SR 2011/302) having been made under section 36), by section 51 of the Telecommunications (TSO, Broadband, and Other Matters) Amendment Act 2011 (2011 No 27).
                  • Section 69U(3): amended, on , by section 37(1) of the Telecommunications (New Regulatory Framework) Amendment Act 2018 (2018 No 48).