2018 saw continued law change and Commerce Commission (Commission) activity. This included:
- Competition studies – Commission got new powers to conduct ‘competition studies’.
- The Court of Appeal overturned the High Court decision in the Hamilton Real Estate price fixing appeal – confirming that even agreeing a component of “price” with competitors is price fixing.
- The Court of Appeal upheld the Commission’s decision to decline authorisation of the NZME/Fairfax merger. The Court confirmed that the merger would likely substantially lessen competition in advertising and reader markets in NZ, which would not be outweighed by public benefits.
- May 2018 marked the end of the transitional period for the new civil cartel law – all arrangements with actual/potential competitors must now be compliant.
2019 signals significant potential changes. Businesses can submit on some of the proposed changes and should prepare for the more imminent changes ahead, including:
- Abuse of substantial market power – MBIE has initiated a review of section 36 of the Commerce Act.
- Commerce (Criminalisation of Cartels) Amendment Bill – if enacted this will provide for criminal fines of up to $10M for companies, and $0.5M and/or up to 7 years’ imprisonment for individuals.
- Stronger privacy law is set to be enacted in 2019, reflecting international change and the implementation of the European General Data Protection Regulation.
- The Commission is developing fibre input methodologies under the Telecommunications (New Regulatory Framework) Amendment Act 2018.
- The Commission is currently reviewing its Merger Guidelines.
- Ticket reselling – following recent complaints, MBIE announced a review into ticket reselling in NZ.
- Unfair commercial practices – MBIE is considering whether there is a need for additional protections for businesses and consumers against unfair commercial practices.
| Submissions | |
| 1 April 2019 | · MBIE review of s 36 of the Commerce Act (abuse of substantial market power) – submissions on Discussion Paper |
| 18 April 2019 | · MBIE review of ticket reselling in New Zealand – submissions on discussion paper |
| 11 June 2019 | · Commission review of mobile markets – submissions on preliminary findings |
| 2 July 2019 | · Commission review of mobile markets – cross-submissions on preliminary findings |
| 12 July 2019 | · Commission review of fibre input methodologies – submissions on emerging views paper |
| 26 July 2019 | · Commission review of fibre input methodologies – cross-submissions on emerging views paper |
For a more comprehensive insight into the year that has been, view our more detailed note here.
For further information on competition, regulatory, consumer law and compliance, please get in touch with one of the team at Matthews Law or visit our website: www.matthewslaw.co.nz.
Matthews Law, 11 March 2019