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.

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