Former Commerce Commission chair Dame Paula Rebstock will lead the review
The government has launched an extensive review of the nation’s competition framework, aiming to address monopolies and enhance economic productivity, according to Commerce and Consumer Affairs Minister Andrew Bayly.
The initiative seeks to modernise competition laws and strengthen regulatory oversight to improve consumer choices and lower costs.
Bayly stressed the critical role of competition in boosting productivity and raising living standards. He noted that effective competition drives businesses to invest, innovate, and expand, ultimately benefiting consumers with greater choice and more affordable prices. However, he pointed out that New Zealand significantly trails international benchmarks, with limited consumer options and high costs in key sectors such as groceries, banking, and building supplies. Minister Bayly said that the 2022 plasterboard shortage exemplified the country’s vulnerabilities to competition failures.
The review will address two primary areas. First, the government will revisit the competition settings within the Commerce Act, particularly those governing mergers. While mergers can enhance market efficiency, they risk entrenching market dominance and reducing competition. In a statement, Bayly noted that New Zealand’s merger regulations have not been updated in over 20 years, during which time significant market consolidation has occurred.
Second, the review will evaluate the governance and operational effectiveness of the Commerce Commission. The goal is to ensure the regulator can make sound decisions and allocate resources strategically. Minister Bayly explained that this examination would consider whether governance structures, such as sector-specific commissioners, improve accountability and strategy.
The timing of the initiative aligns with Australia’s concurrent review of its competition settings. It also comes as the Commerce Commission’s responsibilities have expanded significantly in recent years, with oversight now including groceries, fuel, and payment systems.
The review will be conducted by a panel of experts led by Dame Paula Rebstock, an economist and former chair of the Commerce Commission. The team, which includes Professor Allan Fels and David Hunt, is expected to deliver its findings by May 2025.
