Strengthening New Zealand’s competition settings

Competition is a key driver of growth and productivity, with knock-on benefits for consumers like more choice and lower prices. The reforms will update our competition laws so they are modern and fit-for-purpose, and provide greater certainty for businesses.

The key changes include:

• Increasing the speed and clarity of the Commerce Commission’s merger review process, so businesses will benefit from quicker, clearer merger decisions with set timeframes.
• Making it easier and less costly for businesses to get clearance for low-risk collaboration, like coming together to tackle scams.
• Modernising the rules around new technologies, such as AI, to ensure businesses understand they remain responsible for the use of these tools.
• Ensuring that sensitive business information provided to the Commission will remain confidential, by providing a 10-year OIA exemption.
• Strengthening the Commission’s ability to combat predatory pricing – where powerful firms deliberately undercut prices to drive out competitors, only to raise prices again once competition is eliminated.

Commerce Commission governance review

At the same time, the Government has decided to make changes to the governance structure of the Commerce Commission, New Zealand’s competition regulator, to put it on a stronger footing for the future. This follows an independent review of the Commission’s governance and effectiveness.

The Commission has seen a rapid expansion of its regulatory responsibilities in recent years across many key sectors including groceries, retail payments and fuel. The Government aims to ensure the Commerce Commission is well equipped to deliver timely, high-quality decisions.

The new model maintains the Commission’s statutory independence but separates regulatory decision-making from governance responsibilities.

Read more information about the Commerce Act reforms and Commerce Commission governance changes:

Refreshing competition settings

Going for Growth

At the same time, the Government has also released an update to the Competitive Business Settings pillar of Going for Growth, its plan to drive economic growth. The update sets out how the Government is making it easier for businesses to operate and grow, building a more agile, innovative and productive economy.

Since Going for Growth was launched in February this year, the Government has taken concrete steps to strengthen competitive business settings including:

• Introducing Investment Boost to encourage businesses to invest in growth-enhancing assets, making them more productive, competitive and able to pay higher wages
• Passing the Customer and Product Data Act and applying it to the banking sector to enable open banking
• Updating Government procurement rules to reduce red tape and ensure spending is responsible, promotes competition and supports New Zealand businesses
• Fast-tracking grocery developments to boost competition.

Updates to the 5 key areas of Going For Growth will be released regularly.

Read more:

Competitive Business Settings

Read the Government’s press release: 

Going For Growth: Competition Reform(external link) — Beehive.govt.nz