Under the proposed change, it will be empowered to assess patterns of small acquisitions over a three-year period, addressing concerns in sectors like health and car parking.<\/p>\n
Another proposal is to clarify the test used by the commission to assess \u201ckiller acquisitions\u201d, where dominant firms acquire and shut down innovative start-ups.<\/p>\n
Predatory pricing is also a focus. The plan is to clarify when businesses are cutting prices to below cost, before hiking them again once they\u2019ve driven out their competition.<\/p>\n
Simpson said there were allegations of this occurring in the aviation, groceries, and building supplies sectors, with legal uncertainty limiting enforcement action. <\/p>\n
A fourth proposal is for the Commerce Commission to be empowered to apply to the High Court to order firms to take action to restore competition where it\u2019s been harmed. <\/p>\n
Currently, the courts can stop unlawful conduct, but the commission\u2019s inability to seek performance injunctions limits its ability to restore competition, especially in digital markets where dominant firms may entrench their position through self-preferencing or discriminatory access.<\/p>\n
Confidentiality and constructive collaboration supported<\/p>\n
The proposed overhaul of the Commerce Act isn\u2019t just about cracking down on anti-competitive behaviour. <\/p>\n
Simpson recognised there could be benefits to competitors collaborating in the interest of the public, in instances where competition wasn\u2019t harmed. <\/p>\n
So, there are various proposals to make it easier and cheaper for businesses to collaborate. <\/p>\n
For example, businesses will be able to notify the commission of the collaboration they\u2019re doing, rather than seek permission. The proposal is also for the commission to exempt categories of conduct that are low-risk or clearly beneficial.<\/p>\n
Another proposal is for the commission to accept commitments from businesses \u2013 known as behavioural undertakings \u2013 to help resolve competition concerns arising from proposed mergers.<\/p>\n
The Government also wants to do more to protect confidential information provided to the commission, noting businesses\u2019 reluctance to share information out of fear it could be made public and misused by their competitors, was undermining the commission\u2019s ability to do its job. <\/p>\n
So, under the proposed changes, confidential information provided to the commission won\u2019t be able to be released under the Official Information Act for 10 years. <\/p>\n
The commission will also be able to do more to keep information confidential and protect whistle-blowers. <\/p>\n
Finally, there is a proposal to confirm that existing prohibitions apply to AI-driven conduct to ensure firms remain accountable for anti-competitive behaviour facilitated by AI.<\/p>\n
Economic Growth Minister Nicola Willis said the changes would provide \u201cmore certainty and reliability for businesses\u201d. <\/p>\n
\u201cCompetition is a key driver of growth, innovation and productivity,\u201d she said.<\/p>\n
\u201cConsumers and businesses thrive when markets are open and fair. But our current settings are outdated, lack clarity and have led to some of our most important markets being dominated by only a handful of players.\u201d <\/p>\n
The Government hoped to have the changes made by mid-2026.<\/p>\n
ComCom\u2019s structure to change<\/p>\n
Separately, Simpson announced the Commerce Commission\u2019s structure would be changed, so it had a new governance board.<\/p>\n
\u201cAn independent review [led by Dame Paula Rebstock] found the Commerce Commission has outgrown its current structure, with the board handling both governance and regulatory decisions,\u201d he said.<\/p>\n
\u201cBy separating these functions, the commission will be able to deliver better outcomes for consumers.\u201d<\/p>\n
Jen\u00e9e Tibshraeny is the Herald\u2019s Wellington business editor, based in the parliamentary press gallery. She specialises in government and Reserve Bank policymaking, economics and banking.<\/p>\n","protected":false},"excerpt":{"rendered":"Under the proposed change, it will be empowered to assess patterns of small acquisitions over a three-year period,…\n","protected":false},"author":2,"featured_media":24657,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[16660,4619,95,138,7520,2371,25089,4596,219,25091,14676,266,14235,25090,130,111,139,69,5256,25087,9366,25086,25088,1886,61],"class_list":["post-24656","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-acquisitions","tag-act","tag-and","tag-business","tag-commerce","tag-commission","tag-commitment","tag-competition","tag-economy","tag-effectively","tag-empower","tag-government","tag-killer","tag-modernising","tag-more","tag-new-zealand","tag-newzealand","tag-nz","tag-overhaul","tag-predatory","tag-pricing","tag-quash","tag-reiterating","tag-support","tag-to"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/24656","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=24656"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/24656\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/24657"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=24656"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=24656"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=24656"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}