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Commerce Commission briefing papernew challenges and major cases

Commerce Commission briefing papernew challenges and major cases

Published 31 January 2000

The Commerce Commission's briefing paper to the new Government was one of a number of briefing papers publicly released on Friday by the Acting Minister of Commerce, Trevor Mallard.

The briefing paper states that the challenges faced by the Commission include:

  • emerging issues in network industries, and possible new regulatory functions such as electricity price control
  • amendments to the Commerce Act that would likely increase the volume and complexity of cases, particularly until new case law develops
  • major authorisation applications, which usually require extensive investigative and analytical resources, and price fixing and predatory pricing cases, which can span several years and entail significant legal costs.

Last year the Commission's results included high Commerce Act penalties and record Fair Trading Act penalties. Settlements bringing significant benefits to competition and consumers were achieved and more than 50 applications for adjudication decisions were investigated.

In addressing the challenges ahead, the Commission states that it stands ready to contribute as appropriate to the Government's legislative developments and new initiatives that impact on the Commission's work.

Copies of the Commission's briefing paper are available from the Commission's website, www.comcom.govt.nz, where it is attached to this media release, and reception at the Commission's Wellington office, level 7 Landcorp House, 101 Lambton Quay.

Background: Commerce Commission role and purpose

  • The Commerce Commission is a Crown entity established under the Commerce Act 1986. It is responsible for promoting awareness of, and compliance with, that Act and the Fair Trading Act 1986. The Commission's functions include education, investigation into alleged breaches, and litigation. Another function of the Commission under the Commerce Act is to adjudicate on applications for business acquisitions and restrictive trade practices. A recent additional responsibility for the Commission is enforcement of the Electricity Industry Reform Act 1998.
  • These Acts are designed to ensure healthy competition amongst businesses and informed choice by consumers, thereby benefiting the wider economy and enhancing the wellbeing of New Zealanders.
  • The Commission is not a policy adviser to the Government. That role in these areas is performed primarily by the Ministries of Commerce and Consumer Affairs. The Commission operates within the policy and statutory framework that has been established, and performs enforcement and quasi-judicial functions.

    • Media contact: General Manager Ken Heaton

    Phone work (04) 498 0962

    Communications Officer Vincent Cholewa

    Phone work (04) 498 0920

    An electronic copy in Adobe PDF or Word format is available from Vince Cholewa via email: vince.cholewa@comcom.govt.nz

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