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Commerce Commission
The Commerce Commission (Māori: Te Komihana Tauhokohoko) (sometimes shortened to ComCom) is a New Zealand government agency with responsibility for enforcing legislation that relates to competition in the country's markets, fair trading and consumer credit contracts, and regulatory responsibility for areas such as electricity and gas, telecommunications, dairy products and airports. It is an independent Crown entity established under the Commerce Act 1986. Although responsible to the Minister of Commerce and Consumer Affairs and the Minister of Broadcasting, Communications and Digital Media, the Commission is run independently from the government, and is intended to be an impartial promotor and enforcer of the law.
The Commission undertakes investigations into potential breaches of the Commerce Act 1986 and where appropriate, takes court action. It considers applications for authorisations and clearances in relation to anti-competitive behaviour and mergers, in circumstances where the public benefit outweighs the harm to competition. In specific areas where it has regulatory responsibilities, such as electricity and gas, the Commission has additional enforcement powers to promote competition and protect consumers.
The Commerce Commission was introduced under the Commerce Act 1986 as an integrated regulatory body with responsibilities for competition, economic regulation and consumer protection, modelled after the Australian Trade Practices Commission. The Commission was given the power of enforcing the Commerce Act's prohibitions through court proceedings, and to authorise anti-competitive behaviour and mergers in certain circumstances. One key difference between the Australian and New Zealand regimes is that appeals from the Commerce Commission's decisions are decided by the general courts of New Zealand, unlike Australia where appeals are reviewed by a specialist tribunal.
The Commission is made up of a chairperson and four to six general commissioners. Three to five of the commissioners are appointed by the Governor General, on the recommendation of the Minister of Commerce and Consumer Affairs. A Telecommunications Commissioner is appointed on the recommendation of the Minister of Broadcasting, Communications and Digital Media and has special responsibilities in relation to that sector. As of 2025[update], the current chairperson of the Commission is Dr John Small, appointed in December 2022 after the expiry of the three-year term of the previous chair, Anna Rawlings.
One of the key roles of the Commission is to ensure markets in New Zealand are competitive, including by investigating anti-competitive behaviour and enforcing compliance. Investigations may involve gathering publicly available information, requesting information on a voluntary basis or compulsory basis, conducting interviews, and executing search warrants. The Commission has a range of enforcement options including the provision of compliance advice or warning letters and by prosecuting a person or business in the High Court. The Commission is responsible for enforcing prohibitions against "restrictive trade practices" (anti-competitive behaviour or conduct that reduces competition), which includes (for example) cartels or price-fixing behaviour, taking advantage of market power, or resale price maintenance.
For example, in 2013, a number of real estate agencies in Hamilton entered into an agreement to adopt a particular pricing model for real estate listings on Trade Me, a New Zealand website. The Commission considered that as a result of these meetings the agencies entered into price-fixing arrangements in breach of section 30 of the Commerce Act, and issued substantial financial penalties against these agencies. Some of the agencies accepted and paid the penalties, whilst others appealed. In April 2020 the penalties were upheld by the Supreme Court. In total, thirteen companies and three individuals were ordered to pay nearly NZ$23 million in penalties.
In April 2021, cartel conduct becomes a criminal offence in New Zealand and can be punished by up to seven years' imprisonment. The Commission will have new powers under the Search and Surveillance Act 2012 such as the ability to apply for surveillance wiretaps.
The Commission has a cartel leniency policy to assist in the investigation of anti-competitive arrangements between competitors that are often secret and difficult to detect. The Commission wishes to encourage those involved in cartel conduct to report the cartel to the Commission. The Commission will grant immunity from Commission-initiated prosecution to the first person involved in a cartel to come forward with information and formally apply for leniency, provided they co-operate fully with the Commission in its investigation and prosecution of the cartel. The leniency policy applies to arrangements between competitors which substantially lessen competition. It does not include other kinds of anti-competitive behaviour such as a company taking advantage of a substantial degree of market power or resale price maintenance.
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Commerce Commission
The Commerce Commission (Māori: Te Komihana Tauhokohoko) (sometimes shortened to ComCom) is a New Zealand government agency with responsibility for enforcing legislation that relates to competition in the country's markets, fair trading and consumer credit contracts, and regulatory responsibility for areas such as electricity and gas, telecommunications, dairy products and airports. It is an independent Crown entity established under the Commerce Act 1986. Although responsible to the Minister of Commerce and Consumer Affairs and the Minister of Broadcasting, Communications and Digital Media, the Commission is run independently from the government, and is intended to be an impartial promotor and enforcer of the law.
The Commission undertakes investigations into potential breaches of the Commerce Act 1986 and where appropriate, takes court action. It considers applications for authorisations and clearances in relation to anti-competitive behaviour and mergers, in circumstances where the public benefit outweighs the harm to competition. In specific areas where it has regulatory responsibilities, such as electricity and gas, the Commission has additional enforcement powers to promote competition and protect consumers.
The Commerce Commission was introduced under the Commerce Act 1986 as an integrated regulatory body with responsibilities for competition, economic regulation and consumer protection, modelled after the Australian Trade Practices Commission. The Commission was given the power of enforcing the Commerce Act's prohibitions through court proceedings, and to authorise anti-competitive behaviour and mergers in certain circumstances. One key difference between the Australian and New Zealand regimes is that appeals from the Commerce Commission's decisions are decided by the general courts of New Zealand, unlike Australia where appeals are reviewed by a specialist tribunal.
The Commission is made up of a chairperson and four to six general commissioners. Three to five of the commissioners are appointed by the Governor General, on the recommendation of the Minister of Commerce and Consumer Affairs. A Telecommunications Commissioner is appointed on the recommendation of the Minister of Broadcasting, Communications and Digital Media and has special responsibilities in relation to that sector. As of 2025[update], the current chairperson of the Commission is Dr John Small, appointed in December 2022 after the expiry of the three-year term of the previous chair, Anna Rawlings.
One of the key roles of the Commission is to ensure markets in New Zealand are competitive, including by investigating anti-competitive behaviour and enforcing compliance. Investigations may involve gathering publicly available information, requesting information on a voluntary basis or compulsory basis, conducting interviews, and executing search warrants. The Commission has a range of enforcement options including the provision of compliance advice or warning letters and by prosecuting a person or business in the High Court. The Commission is responsible for enforcing prohibitions against "restrictive trade practices" (anti-competitive behaviour or conduct that reduces competition), which includes (for example) cartels or price-fixing behaviour, taking advantage of market power, or resale price maintenance.
For example, in 2013, a number of real estate agencies in Hamilton entered into an agreement to adopt a particular pricing model for real estate listings on Trade Me, a New Zealand website. The Commission considered that as a result of these meetings the agencies entered into price-fixing arrangements in breach of section 30 of the Commerce Act, and issued substantial financial penalties against these agencies. Some of the agencies accepted and paid the penalties, whilst others appealed. In April 2020 the penalties were upheld by the Supreme Court. In total, thirteen companies and three individuals were ordered to pay nearly NZ$23 million in penalties.
In April 2021, cartel conduct becomes a criminal offence in New Zealand and can be punished by up to seven years' imprisonment. The Commission will have new powers under the Search and Surveillance Act 2012 such as the ability to apply for surveillance wiretaps.
The Commission has a cartel leniency policy to assist in the investigation of anti-competitive arrangements between competitors that are often secret and difficult to detect. The Commission wishes to encourage those involved in cartel conduct to report the cartel to the Commission. The Commission will grant immunity from Commission-initiated prosecution to the first person involved in a cartel to come forward with information and formally apply for leniency, provided they co-operate fully with the Commission in its investigation and prosecution of the cartel. The leniency policy applies to arrangements between competitors which substantially lessen competition. It does not include other kinds of anti-competitive behaviour such as a company taking advantage of a substantial degree of market power or resale price maintenance.