A major review aims to combat monopolies and improve economic productivity in New Zealand.
The Government has launched an ambitious review of New Zealand's competition rules, with Commerce and Consumer Affairs Minister Andrew Bayly stating that improving competition is crucial for boosting productivity and living standards. The review focuses on updating the Commerce Act and reviewing the governance and effectiveness of the Commerce Commission.
The review will consider the merger settings in the Commerce Act, which has not been reviewed in over 20 years. It will also examine the Commerce Commission's organisational capability to ensure it can make good decisions and prioritize its resources effectively. The review aims to establish a robust competition framework that will withstand the test of time for the benefit of all New Zealanders.
Led by respected economist Dame Paula Rebstock, the review is expected to be completed by May 2025. It is a significant effort to address concerns about limited choice and high prices in various sectors, including groceries, banking, and building supplies.
The Government's move follows OECD research indicating that New Zealand lags behind its international peers when it comes to competition. The review is seen as an opportunity for the country to align itself with Australia, which is conducting a similar review of its competition settings. By addressing these issues, the Government aims to drive down the cost of living and increase productivity in New Zealand.
The review will be led by respected economist Dame Paula Rebstock, Professor Allan Fels and David Hunt. The results are expected to have significant implications for businesses and consumers alike.