Neil Sands
Commerce and Consumer Affairs Minister Andrew Bayly has launched a major review of competition policy aimed at tightening merger rules and modernising the regulator for the digital age.
Bayly, who flagged the shake-up to LawNews in September, said OECD research showed New Zealand’s economy lags well behind international peers in terms of competition.
“Unfortunately, most New Zealanders do not need an expert to tell them this,” he said. “Kiwis face limited choice and high prices in a number of key sectors from groceries to banking and building supplies.”
The review, headed by former Commerce Commission chair and economist Paula Rebstock, is expected to be completed by May 2025.
It will focus on two areas:
- examining competition settings in the Commerce Act, particularly the merger control regime; and
- scrutinising the Commerce Commission to ensure it has the capability to fulfil its role in the modern economy
“Now is a good time to take stock,” Bayly said. “Australia is conducting a similar review of their competition settings, and it makes sense to align ourselves, given our close economic ties.
“It also follows a period of rapid growth in the commission’s regulatory responsibilities with new functions in the groceries, fuel and payment sectors.”
The review has Australian expertise on board in the form of former the Australian Competition & Consumer Commission Allan Fels, who will assist Rebstock alongside economist David Hunt.
“These reforms, if implemented, would represent the most significant changes to New Zealand’s competition law regime in more than 20 years,” Auckland-based law firm Russell McVeagh said in an online commentary.
0 Comments