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.
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
Regulatory impact statements
2016 submissions and cross-submissions
Submissions on the issues paper consultation closed on 9 February 2016, and a total of 39 were received.
In addition, the Commerce Commission sent a supplementary letter to the Minister of Commerce and Consumer Affairs.
The cross-submissions consultation closed on 21 July 2016 and a total of 25 were received.