HP New Zealand seeks reauthorisation for resale price maintenance
The Commerce Commission has received an application from HP New Zealand (HPNZ) seeking authorisation to engage in resale price maintenance (RPM) in relation to its HP online stores and prospective HP online marketplace stores for a period of up to 10 years.
HPNZ is the local importer, distributor and supplier of HP-branded technology products in New Zealand. HPNZ seeks authorisation for it 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).
The Commission previously authorised this arrangement in August 2021 for five years, and this authorisation is due to expire on 31 August 2026.
The Commission has published a statement of preliminary issues relating to this application. The statement outlines the key issues that the Commission considers important in deciding whether or not to grant authorisation for HPNZ’s proposed arrangements.
The Commission invites parties who have an interest in the proposed arrangements to provide comments on the likely benefits and detriments of the proposed arrangements, including any likely competitive effects. Public submissions on the application can be sent by email to registrar@comcom.govt.nz with the reference ‘HPNZ Authorisation’ in the subject line. Any submissions should be received by close of business on 19 May 2026.
The statutory deadline for making a determination on this authorisation is 21 October 2026.
The Statement of Preliminary Issues and a public version of the application for authorisation is available on the Commission’s case register.
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 Stores 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 Stores and it is seeking to continue that pricing arrangement.
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.
Resale price maintenance
Resale price maintenance (RPM) occurs when a supplier of goods enforces, or tries to enforce, a minimum price at which a reseller must on-sell those goods. RPM prevents resellers from setting their prices independently and can lead to increased prices for consumers. It is a form of anti-competitive conduct and is unlawful unless authorised by the Commission.
The RPM conduct for which HPNZ seeks authorisation involves HPNZ controlling the product and marketing strategies and specifying the prices for which the third party will sell the HP products to consumers, through the HP-branded Online Stores in New Zealand.
The RPM conduct will only apply to products sold by the third-party distributor through the HP Stores. HP’s existing distribution network, which consists of various authorised distributors, resellers and retailers of HP products and non-HP stores will continue without change.
Authorisations
Competition law recognises that some resale price maintenance arrangements may have public benefits that outweigh the detriments arising from the agreement.
In such cases, firms can voluntarily apply to the Commission for authorisation.
The Commission may grant authorisation under section 58 of the Commerce Act 1986 (the Act) for agreements that may otherwise 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 these anti-competitive agreements will be authorised under section 58 of the Act, and our process for determining such authorisation applications. A copy of the guidelines can be found on the Commission’s website.