Draft determination proposing authorisation of HP New Zealand’s application

The proposed arrangement would give HPNZ the ability to continue to set the prices at which a third-party distributor can sell HP products direct to customers, through the HP-branded online stores in New Zealand (and prospective HP online marketplace stores). It does not affect the pricing of HP products sold through any other channel.

In 2021, the Commission authorised the conduct for five years to allow for the benefits and detriments of the conduct (theoretical at that time) to accrue. Evidence suggests the conduct has had, and will continue to have, net benefits, although these are likely small.

Commerce Commission Chair Dr John Small says: “We currently consider it is appropriate to authorise the conduct as the proposed arrangement is likely to have no real detriments and some small benefits.”

“We provisionally accept that the RPM conduct affects only a very small proportion of sales. In light of this, the lack of detriments and the fact that the benefits are not overly large but still positive, we consider at this stage a ten-year term for this authorisation to be appropriate,” Dr Small says.

A copy of the Commission’s draft determination is 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 “HPNZ Authorisation Application” in the subject line.

Any submissions by interested parties should be received by 23 July 2026, with cross-submissions due by midday on 30 July 2026.

Background

HPNZ’s parent company, HP Inc., is a manufacturer of HP-branded technology products including desktop computers, notebooks, printers and related accessories and supplies. HP imports, distributes and supplies HP products in New Zealand through its network of distributors, retail channel partners and resellers for resupply to consumers and business customers.

HPNZ currently operates the HP-branded online store in New Zealand, but it does not sell direct to consumers in New Zealand. Instead, under the terms of the existing authorisation, it sells goods to a local entity, which then transacts with the consumers purchasing goods from the HP Online Stores.

HPNZ currently controls the retail prices at which that local entity sells those products through the HP online store and it is seeking to continue that pricing arrangement. Because this amounts to RPM, the Commission previously authorised this arrangement in August 2021 for five years, and this authorisation is due to expire on 31 August 2026.

HPNZ does not control the retail prices at which that local entity sells HP products through other channels, and the conduct does not affect any other distributor or reseller of HP products.

Authorisation requirements

The Commission may grant authorisation under section 58 of the Commerce Act 1986 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 is available.