... Tighten Up on Anti-Competitive Behaviour

Recent changes to the Commerce Act 1986 have been introduced to promote competitive behaviour and provide clarity around competition law. The Commerce Act prohibits anti-competitive behaviour such as price fixing. As well, the changes broaden the scope of the definitions relating to other prohibited cartel activities including output restrictions and market allocation. This change aligns New Zealand's competition law with Australia and other jurisdictions.

In addition, the changes introduce new exemptions to what would typically be considered cartel arrangements. These exemptions recognise that the extended definition of cartel behaviour now captures otherwise legitimate business relationships between suppliers and distributors that are also competitors. Two exemptions include certain collaborative activities and vertical supply contracts, provided specific criteria are met.

The changes also introduce a clearance mechanism where parties contemplating collaborative conduct can obtain prior approval from the Commerce Commission.

If you have any concerns about how these changes might affect your arrangements, please contact us.