Improving competition settings to lift productivity

Today the Government has announced a review of New Zealand’s overall competition settings, set out in the Commerce Act 1986, to promote greater competition across the economy.

When competition is working well, businesses have a level playing field and are incentivised to invest, grow and innovate. This has knock-on benefits across the economy by increasing productivity and offering more choice and lower prices for consumers.

As a first step, consultation has opened today on 3 workstreams as part of the overall review:

• Reviewing the merger control regime (Part 3 of the Commerce Act)
• Modernising tools to address business conduct that could harm competition (Part 2 of the Commerce Act)
• New code or rule-making power to promote competition.

Much of the Commerce Act has not been updated in over 20 years, and evidence, including recent OECD research, indicates New Zealand is falling behind internationally. This consultation is an opportunity to hear views on how our competition settings could be updated to better address issues in New Zealand markets and learn from international best practice to ensure our settings remain agile, responsive and fit for purpose.

In addition, a review will commence shortly to look at the governance and effectiveness of New Zealand’s competition regulator, the Commerce Commission. This review will be led by Dame Paula Rebstock, supported by an independent panel with international expertise, and will be completed by May 2025. The aim is to ensure the Commission has the governance arrangements and capabilities it needs to meet future challenges and continue to deliver benefits to New Zealanders. This follows rapid growth in the Commission’s regulatory responsibilities over recent years, including important new functions in the retail groceries and retail fuel markets, and with retail payment systems.

Read the Government's announcement.

Major review of competition to lift productivity(external link) — Beehive.govt.nz

Find out more about the consultation and how to have your say.

Have your say: Seeking feedback to improve competition in New Zealand

Find out more about this work, including the Terms of Reference for the governance and effectiveness review of the Commerce Commission.

Refreshing competition settings