Competition reforms will drive productivity, growth and innovation for businesses and Kiwi consumers.
The Commerce (Promoting Competition and Other Matters) Amendment Bill passed its first reading, marking a significant step toward a stronger economy.
“This Government is modernising competition law. Competition helps our economy thrive, and it’s a key part of the Government’s growth strategy. The changes mean a more balanced playing field – a place where Kiwi businesses thrive, and consumers get more choice,” said Commerce and Consumer Affairs Minister Scott Simpson.
“We are fixing processes that, over the years, have led to a small number of companies dominating some of our most important markets. This undermines competition, giving consumers less choice, keeping prices high and making it tough for smaller businesses to break in.”
This is the first significant reform of the Commerce Act in nearly 20 years, so these changes are well overdue.
The Bill will reduce compliance costs for beneficial collaboration, increase business certainty and improve the merger review process, welcome moves which have been called for by stakeholders.
Key changes being progressed in the Bill include:
- Stopping unfair tactics like creeping acquisitions and predatory pricing so genuine competitors can thrive.
- Clearer merger rules to give businesses certainty while keeping markets fair.
- Streamlined approval for beneficial collaboration, making it easier for businesses to work together where it helps the public.
- Allowing the Commerce Commission to accept behavioural undertakings as part of merger applications.
- Powers to temporarily suspend or ‘call in’ risky mergers before they are complete, so they can be assessed.
“The changes work for businesses and for customers. Not only will they help to strengthen competition, but they will also make it easier for firms to collaborate when that’s in consumers’ best interests, like coming together to tackle scams,” added Simpson.
“We’re also reshaping the merger regime so it’s fit for the future. The new regime will deliver the competition and growth that Kiwi consumers and businesses are looking for.”
The Government expects to pass the Commerce Amendment Bill by mid-2026.
More local FMCG news here
