Govt Accelerates Nationwide Review to Boost Competition and Lower Living Costs

The review, initiated in December of last year, is focused on the Commerce Act, much of which has remained unchanged for over two decades.

The Government is pushing forward with its comprehensive review of New Zealand's competition laws, aimed at enhancing market competitiveness, improving productivity, and alleviating cost-of-living pressures, announced Commerce and Consumer Affairs Minister Andrew Bayly.

"Fostering stronger competition is a key priority for this Government," Mr. Bayly stated. "When markets function efficiently, businesses of all sizes across New Zealand flourish. This, in turn, brings tangible benefits to consumers—more choices and lower prices in essential sectors like fuel, groceries, and banking."

The review, initiated in December of last year, is focused on the Commerce Act, much of which has remained unchanged for over two decades. "I am committed to ensuring that our competition regulations evolve alongside market developments. This will help both Kiwi businesses and consumers to thrive in a dynamic economy," Mr. Bayly added.

Unlike previous adjustments that have targeted specific sectors, this review aims to overhaul the broader competition framework. "By strengthening our overarching competition settings, we can minimize the need for reactive, piecemeal regulations in individual sectors," Bayly explained.

Public consultation has recently concluded on several pivotal aspects of the review, including merger control policies, potential new powers to establish industry codes, and modern mechanisms to combat anti-competitive behaviors.

A significant component of the review is the scrutiny of New Zealand's merger regulations. "For decades, New Zealanders have experienced the downsides of unchecked mergers and unhealthy market dominance—less innovation, limited product and service options, and higher prices," said Mr. Bayly. "With stronger merger controls, we can promote healthier competition and ensure Kiwis receive fairer deals."

The Minister expressed gratitude to those who contributed their insights during the consultation period. "Your feedback is invaluable in shaping reforms that will foster competitive, vibrant markets, ultimately boosting economic productivity and improving living standards across the country."

Mr. Bayly confirmed that decisions on the next steps of the review will be announced shortly.