Targeted review of the Commerce Act 2015
We carried out a targeted review of the Commerce Act, which looked at the misuse of market power, market studies and alternative enforcement mechanisms.
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About the targeted review
The first stage of the targeted review of the Commerce Act was the publication of an issues paper on 17 November 2015. This addressed 3 main matters:
- the possibility of a market studies power
- the alternative enforcement mechanisms available under the Commerce Act (such as the cease-and-desist regime)
- Section 36 of the Commerce Act — that is, the prohibition on misuse of market power — and whether it is working effectively.
Targeted Review of the Commerce Act 1986 —Issues Paper November 2015 [PDF, 622 KB]
2017 Cabinet decisions on review outcomes
Cabinet made decisions on the targeted review of the Commerce Act in May and June 2017.
In summary, Cabinet decided to:
- repeal the cease-and-desist regime
- establish an enforceable undertakings regime
- allow the Minister of Commerce and Consumer Affairs to direct the Commerce Commission to undertake market studies, and
- invite the Minister of Commerce and Consumer Affairs to report back by 30 June 2018 before making final decisions on whether to proceed to a section 36 options paper for the prohibition against misuse of market power (section 36 in the Act).
Related cabinet papers and regulatory impact statements
Cabinet papers
Cabinet paper: Outcomes of the targeted review of the Commerce Act [PDF, 276 KB]
Cabinet paper: Initiation and financing of market studies [PDF, 170 KB]
Regulatory impact statements
Regulatory impact statement: Section 36 [PDF, 632 KB]
Regulatory impact statement: Market studies [PDF, 570 KB]
Regulatory impact statement: Alternative enforcement mechanisms [PDF, 524 KB]
2016 submissions and cross-submissions
Submissions
Submissions on the issues paper consultation closed on 9 February 2016, and a total of 39 were received.
Submissions received on the targeted review of the Commerce Act
In addition, the Commerce Commission sent a supplementary letter to the Minister of Commerce and Consumer Affairs.
Commerce Commission’s letter to the Minister of Commerce and Consumer Affairs [PDF, 1.7 MB]
Cross-submissions
The cross-submissions consultation closed on 21 July 2016 and a total of 25 were received.
Cross-submissions received on the targeted review of the Commerce Act