Competition & Antitrust, New Zealand updates

The importance of not jumping the gun
  • New Zealand
  • 23 August 2018

The New Zealand Commerce Commission's position towards gun jumping is that "while parties to proposed mergers must naturally engage with each other to explore the merits of a transaction prior to binding themselves and consummating a deal", pre-merger discussions and coordination concerns can arise. Businesses contemplating an M&A transaction with their competitors must therefore bear in mind a number of competition law considerations.

NZCC releases updated cartel leniency policy guidelines
  • New Zealand
  • 19 July 2018

The New Zealand Commerce Commission (NZCC) recently published amended cartel leniency policy guidelines, updating its previous guidelines from 2011. While the changes are mostly cosmetic, the updated guidelines indicate a potential change in the NZCC's approach towards penalty discounts for second-in applicants that seek to fall within its cooperation regime.

Tabled bill will provide Commerce Commission with market study powers
  • New Zealand
  • 19 April 2018

The commerce and consumer affairs minister recently tabled a bill in Parliament that will enable the Commerce Commission to undertake market studies. The bill also provides for matters concerning the Commerce Act's competition law regime – namely, repealing its cease and desist regime and empowering the commission to accept enforceable undertakings in order to resolve restrictive trade practice enforcement cases under the act.

Cartel criminalisation is back
  • New Zealand
  • 01 March 2018

The Commerce (Criminalisation of Cartels) Amendment Bill was recently tabled in the House of Representatives. It introduces a new criminal offence for cartel conduct, as well as a requirement for intention for criminal prosecution and a defence against criminal prosecution for individuals who believed that a cartel provision was reasonably necessary for a collaborative activity. This development overturns the previous government's decision to remove criminal penalties for cartel conduct from the bill.

Competition law 2017: a year in review
  • New Zealand
  • 11 January 2018

There were a number of key competition law developments in New Zealand during 2017, including the enactment of the Cartels Act, the postponement of the reform of the prohibition on taking advantage of market power and a significant increase in the proportion of declined merger clearances. In addition, the new Labour-led government stated that it is keen to empower the Commerce Commission to undertake market studies before the end of 2018.

Restricted distribution and online sales
  • New Zealand
  • 04 January 2018

There is a debate in competition law at present concerning whether a company can restrict online sales for their products. Under New Zealand competition law, a supplier restricting its customers from selling on online platforms could be penalised if, among other things, it has market power and imposes restrictions to take advantage of that market power for an anti-competitive purpose. However, legitimate and pro-competitive justifications can be relevant in assessing the legality of such restrictions.

Commerce Commission releases 2017 consumer issues report
  • New Zealand
  • 05 October 2017

The Commerce Commission recently released its Consumer Issues Report 2016/17. Although greater transparency is to be commended, a failure to balance this against the legitimate interests of businesses that have not been involved in any breach of the law, but which are still named and shamed, risks turning the report into a publication which does more harm than good.

Commerce Act reforms: the thinking behind the tinkering
  • New Zealand
  • 21 September 2017

The commerce and consumer affairs minister recently announced that the government was recommending changes to the Commerce Act, including providing the Commerce Commission with powers to undertake market studies and allowing Commerce Commission settlements to be registered as court-enforceable undertakings, so that the commission can litigate breaches of those undertakings without needing to prove that a breach of the Commerce Act has arisen.

Cartel bill passes its third reading
  • New Zealand
  • 07 September 2017

The Commerce (Cartels and Other Matters) Amendment Bill was recently enacted into law. Businesses finally have the additional certainty of prohibitions that are better aligned with the equivalent Australian law and an exemption that is better targeted at efficiency-enhancing collaborations between competitors. Businesses are likely to regard this as a positive step towards having both a more fit-for-purpose exemption and legal certainty regarding the competition law regime going forward.

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