Hon Jacqui Dean
Minister of Commerce and Consumer Affairs
27 June 2017
Changes to Commerce Act will enhance competition
Proposed changes to the Commerce Act will promote better competition in New Zealand, Commerce and Consumer Affairs
Minister Jacqui Dean says.
Following a review of the Act, the Government is recommending that the Commerce Commission be allowed to undertake
market studies.
“These proposals would include empowering the Commerce Commission to undertake market studies and improve its
enforcement actions without having to go to court,” Ms Dean says.
“This will allow the Government to be proactive, rather than reactive.
“It will mean Government can direct the Commission to examine markets where there are potential issues rather than just
waiting for breaches of competition law to occur.
“A market studies power is often used by competition authorities around the world and introducing one here will bring
New Zealand into line with similar jurisdictions.”
Other proposed changes to the Commerce Act include repealing the cease-and-desist regime, as well as allowing
settlements to be registered as enforceable undertakings so any breaches can be quickly penalised by the courts.
“These changes will strengthen the ability of the Commission to enforce settlements without the expense and uncertainty
of litigation. The cease-and desist-regime is cumbersome and has only been used once since it was introduced in 2001,”
Ms Dean says.
The Government has also been considering changes to Section 36 of the Commerce Act, around misuse of market power.
“While the consultation process has demonstrated that Section 36 does not work perfectly for some types of conduct, it
is not yet clear whether an alternative test would benefit competition or consumers.
“Officials will continue to look into this and will report back in mid-2018 before decisions are made regarding section
36,” Ms Dean says.
ends