Government proposes changes to strengthen protections against misuse of market powers

Published: 31 January 2019

The Ministry of Business, Innovation and Employment has released a discussion paper outlining options for strengthening the law which protects consumers from anti-competitive behaviour by powerful businesses.

The proposals would amend section 36 of the Commerce Act, which is intended to prevent businesses from using their market power to suppress competition.

Section 36, as it is currently drafted, is difficult to enforce and is not capturing a wide enough range of anti-competitive conduct.

The Government has also proposed to repeal sections of the Commerce Act that shield some intellectual property arrangements from competition law, and to make technical changes to the treatment of covenants under the Act.

Read the Minister’s media release on the Beehive site(external link)

Read more about the consultation and the discussion paper