Yesterday the Minister of Commerce and Consumer Affairs, Hon Scott Simpson, announced reforms to the Commerce Act, aimed at supporting beneficial collaboration between competitors.
The Minister described these as "initial" reforms, signalling that further reforms will also be announced over the coming weeks.
These initial reforms include:
- A new notification regime for resale price maintenance and small business collective bargaining, allowing firms to proceed unless the Commerce Commission objects.
- Granting the Commission powers to issue class exemptions for low-risk or clearly beneficial conduct.
- Granting the Commission powers to waive or reduce application fees, particularly for small businesses or for public interest initiatives.
- Introducing a new streamlined collaborative activities clearance process, enabling the Commission to grant clearance for "cartel" provisions without conducting a full competition assessment.
- A 10-year exemption from the Official Information Act for confidential material provided to the Commission (and otherwise enhancing the Commission's confidentiality order powers) to address concerns around the Commission's handling of confidential information.
The Minister also said that:
- The Government expects to announce further decisions on changes to the merger regime in the coming weeks; and
- Cabinet decisions on making governance changes to the Commerce Commission are expected shortly (following a governance review led by Dame Paula Rebstock).
More details on this announcement can be seen here.
If you have any questions about how these reforms may impact your business, please contact one of the authors.