New Zealand plans to overhaul its competition law framework
New Zealand's Commerce Commission to Undergo Major Overhaul
New Zealand's competition watchdog, the Commerce Commission, is set for a significant refresh, as the government moves to address rising allegations of predatory pricing practices in sectors like aviation, groceries, and building supplies.
The overhaul aims to modernize and strengthen the country's economy-wide competition regime, with the Commerce Act of 1986 set to undergo amendments by the end of 2025. The Treasury Laws Amendment (Mergers and Acquisitions Reform) Act 2024, passed at the end of 2024, will enter into effect on 1 January 2026.
Under the new regime, the Commerce Commission will be empowered to assess patterns of small acquisitions over a three-year period, addressing creeping acquisitions and predatory news to encourage the growth of genuine competitors.
The commission will also accept voluntary behavioral commitments for the resolution of competition concerns. Proof of recoupment will be eliminated under the new rules, and promotions and one-off discounts will not be captured unless a pattern emerges.
Complex merger cases will be bound by a new statutory timeframe of 140-160 working days. The watchdog will be required to submit a decision summary within one day and publish its full reasons within 20 working days.
The new merger regime will align with Australian frameworks, introducing a new substantial lessening of competition (SLC) test. The SLC test will apply to conduct that "creates, strengthens or entrenches market power".
Regulatory decisions will be delegated to committees or the chief executive and commission staff, and new committees with commercial expertise will be introduced. The proposed amendments will see a new governing board mostly comprising part-time members.
The commission will be able to pause and assess risky mergers before their completion. The refreshed competition regime in New Zealand follows action recently taken by its neighbor Australia to update its merger framework.
The reforms are intended to address complexity, costliness, and delays in the current regime, with the aim of providing clearer rules, faster decisions, and stronger protections. The available search results do not provide specific information about which government members were involved in preparing the amendments to the New Zealand Commerce Act 1986 on September 16, 2025, nor confirmation that these would be presented to Parliament before the end of the year.
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