The Government is overhauling the Commerce Act for the first time in nearly two decades, promising greater protection for consumers and more certainty for businesses.
Economic Growth Minister Nicola Willis and Commerce and Consumer Affairs Minister Scott Simpson announced the reforms on Monday, describing them as a long-overdue update to competition law.
“These changes provide more certainty and reliability for businesses, and are what this Government was elected to deliver,” Willis said.
“Competition is a key driver of growth, innovation and productivity. Consumers and businesses thrive when markets are open and fair. But our current settings are outdated, lack clarity and have led to some of our most important markets being dominated by only a handful of players.”
Key Reforms
- Cracking down on unfair tactics: Practices such as creeping acquisitions and predatory pricing will be targeted so genuine competitors can thrive.
- Clearer merger rules: Businesses will gain certainty while regulators keep markets fair.
- Strengthened Commerce Commission: A new structure will separate governance from regulatory decisions, enabling faster and more transparent rulings.
- Streamlined approvals: Beneficial collaboration between businesses will be easier to approve when it delivers public benefits.
- Voluntary commitments: Businesses can offer undertakings to limit market power as part of merger applications.
Simpson said the reforms would modernise the Commerce Commission to ensure it remains effective.
“An independent review found the Commerce Commission has outgrown its current structure, with the board handling both governance and regulatory decisions,” he said. “By separating these functions, the Commission will be able to deliver better outcomes for consumers.”
The Commission will also gain new tools, including the ability to “call in” risky mergers before completion, and to accept behavioural undertakings from businesses to address competition concerns. Clearer statutory timeframes will aim to make decisions more timely and transparent.
“These changes will ensure the merger regime is fit for purpose, making it easier to identify and stop deals that could harm competition,” Simpson said. “Importantly, these changes lift the bar on which mergers can proceed. This will prevent dominant firms entrenching their power and give businesses and consumers more choice, sharper prices and fairer markets.”
The amendments to the Commerce Act will be introduced to Parliament before Christmas, with the Government aiming to have them passed by mid-2026.
Willis also released an update on the Government’s Going for Growth programme, saying the reforms were part of wider efforts to create jobs and lift incomes by making it easier for businesses to grow.
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