ComCom issues draft decision declining NZGA collective bargaining application
The Commerce Commission has issued a draft determination proposing to decline authorisation for New Zealand Gynaecology Association Inc (NZGA) and its members to collectively negotiate with health insurance company Southern Cross and hospitals for a 10-year period, and for its members to enter into …
The Commission’s preliminary view is the proposed arrangements should not be authorised because the potential detriments of the proposed arrangements are likely to outweigh any potential benefits.
Separately, the Commission has declined NZGA’s application for interim authorisation in respect of the same. The Commission has reached the view that there is no evidence of urgency and interim authorisation would likely have greater detriments than benefits. For these reasons, the Commission is not satisfied that it is appropriate to grant interim authorisation.
Copies of the Commission’s draft determination and interim determination are available on the case register.
The Commission seeks submissions from interested parties in relation to its draft determination.
Submissions can be sent by email to registrar@comcom.govt.nz with the reference “NZGA Authorisation Application” in the subject line.
Interested parties intending to submit on the draft determination should do so by 7 October 2026. Cross-submissions should be received by midday 21 October 2026.
Background
NZGA is an association that represents and advocates on behalf of its gynaecologist members.
Gynaecology surgeries funded by private health insurance are currently billed on a fee-for-service basis, where each service provider (anaesthetists, hospitals and gynaecologists) separately bills a fee of their own determination to the patient, who passes on the cost to their insurer. Southern Cross Health Insurance (SCHI), New Zealand’s largest health insurer, is seeking to implement its Affiliated Provider scheme to gynaecological surgical services. Under that scheme SCHI is proposing changes to billing and contractual arrangements and significant fee reductions for gynaecologists.
Interim authorisations
Interim authorisations have the same effect as full authorisations (described below), but are of limited duration and are only available while the Commission considers an application for authorisation of the relevant agreement or unilateral conduct. The agreement or conduct authorised on an interim basis cannot be challenged by the Commission or by a third party as being in breach of the relevant provisions of the Commerce Act 1986 (the Act), while the interim authorisation remains in force.
The Commission may grant interim authorisation where it considers it appropriate to allow the proposed agreement or unilateral conduct to be given effect to while due consideration is given to the application for authorisation; or for any other reason. Given the purpose of the Commerce Act and of the authorisation regime, the Commission is unlikely to grant interim authorisation in respect of an agreement or unilateral conduct that has the potential to lessen competition unless there are compelling reasons in the public interest to do so.
The Commission may grant an interim authorisation at any time during its consideration of the application for authorisation. It is most likely to do so at or near the beginning of the authorisation process, or at the same time as making a draft determination on the application for which authorisation is sought. In this case, the Commission decided NZGA’s application for interim authorisation at the same time as making a draft determination.
Authorisation requirements
The Commission may grant authorisation under section 58 of the Act for agreements that may breach the Act if it is satisfied that the agreement will in all the circumstances result, or be likely to result, in such a benefit to the public that the conduct should be permitted.
The Commission’s Authorisation Guidelines explain when anti-competitive agreements that may lessen competition or which contain a cartel provision can be authorised under section 58 of the Act, and our process for determining applications.
A copy of the guidelines are availableopen_in_new.