Significant developments in 2025
Inquiry launched into New Zealand's ports and maritime sector
The Transport and Infrastructure Committee has begun an inquiry into New Zealand's ports and maritime sector with the purpose of examining the "current state of play, challenges, and future opportunities within the ports and maritime sectors" (Inquiry). The Inquiry seeks to identify opportunities to strengthen the performance of New Zealand's ports to lift productivity for exporters and importers. For more on the Inquiry's terms of reference see here.
NZCC introduces new interchange fee pricing standard
The Commerce Commission (NZCC) released its final report and determination on interchange fees for the Visa and Mastercard networks. The final pricing standard came into force on 1 December 2025, revoking the initial pricing standard and reduces the maximum interchange fees that can be charged for using the Visa or Mastercard networks for different payment methods (such as whether the payment is a debit or credit transaction or is contacted or contactless) and introduces caps for foreign-issued card transactions.
In the meantime, the Government has introduced the Retail Payment System (Ban on Merchant Surcharges) Bill, which would ban merchant surcharging on in-store EFTPOS, Visa and MasterCard debit and credit payments.
Parliament passes LWDW legislation
The Local Government (Water Services) Act 2025 received royal assent, bringing the Government's Local Water Done Well legislative (LWDW) reform programme to a close by establishing an enduring regulatory framework for water services delivery. LWDW requires councils to choose a financially sustainable water delivery arrangement, including the option of transferring responsibility to water organisations, including jointly owned council-controlled organisations (CCOs) involving numerous councils. Councils have now submitted their water services delivery plans for approval by the Secretary for Local Government. Read more
NZCC publishes draft information disclosure framework for water services
As part of the LWDW reforms, the NZCC is required to implement information disclosure regulation under Part 4 of the Commerce Act 1986 (Commerce Act) for the water sector. The NZCC published its draft determination in September and will consider submissions before publishing a final determination by 26 February 2026. The NZCC consulted on a potential staggered approach to implementation, a key question being whether the initial determination should principally focus on basic disclosures on asset management, financial sustainability and ensuring water services revenue is spent on water services. Read more
Energy reform package to expand the Electricity Authority's powers and responsibilities
The Government has announced proposals to expand the powers and responsibilities of the Electricity Authority (EA) as part of its wider reforms to the electricity and gas sectors. These proposals reflect the Government's desire to make the EA a "more powerful, decisive regulator, focused on ensuring a genuinely competitive and reliable market". Key regulatory changes include strengthening the powers of the EA through increasing penalties for breaches of the Electricity Industry Participation Code, broader information gathering powers and introducing criminal liability for misleading or deceiving the EA. Our alert provides an overview of the other regulatory changes under the energy package.
NZCC undertakes targeted assessment of airport regulation
Following a request by Air New Zealand for the NZCC to initiate a section 56 inquiry under the Commerce Act into airport regulation, the NZCC completed a targeted review of airport regulatory settings. The NZCC concluded a s 56 inquiry was not necessary and such a process could result in "over-regulation across the regulated airport sector". The NZCC has signalled it will carry out a review of information disclosure requirements relating to airport capital expenditure in January 2026.
Ministry for Regulation looks to slash red tape in the hospitality industry
The Ministry for Regulation has set its sights on regulations and red tape in the hospitality sector for its next regulatory review. The scope of the review includes regulations applying to restaurants, bars, cafes, food stalls, food trucks, catering and hotels, and will identify "pain points" for the sector. The final report is due March 2026.
NZCC publishes new Grocery Supply Code
The NZCC concluded its review of the Grocery Supply Code and published its determination setting out a new Grocery Supply Code (GSC) that will come into force in May 2026. The new GSC includes a new anti-retaliation provision, prohibits investment buying by regulated grocery retailers (RGRs) and removes the ability for suppliers and RGRs to negotiate for suppliers to make reasonable payments for wastage.
Airlines judicial review of NZCC input methodology determination
The High Court exercised its discretion to decline relief in judicial review proceedings bought by Air New Zealand seeking to overturn the NZCC's 2023 input methodology determination for the cost of capital (WACC). Air New Zealand was successful in its first cause of action in establishing that the NZCC coding errors in the determination amounted to an incontrovertible mistake of fact. However, given the determination was subject to an ongoing High Court merits review and the NZCC's commitment to reconsider the input methodology, Justice Radich held that any procedural unfairness will be corrected through those appeals and that commitment and declined to grant relief.
Regulatory Standards Act passes into law
Last month Parliament passed the Regulatory Standards Act 2025 (RSA). The RSA is a key element of the coalition Government's reforms to reduce red tape and its enactment fulfils a key commitment made in the National-ACT Coalition Agreement. The RSA establishes a set of principles of responsible regulation, and a Regulatory Standards Board which will carry out inquiries into whether legislation is inconsistent with the principles of responsible regulation and consider consistency accountability statement for Government Bills.
NZCC releases price-quality path approach paper for Watercare
The NZCC has released its approach paper for setting a price-quality path for Watercare. Watercare became subject to interim economic regulation in April this year and will transition to price-quality regulation under Part 4 of the Commerce Act in mid-2028. The NZCC has proposed applying a "building blocks" approach to setting Watercare's price-quality path, in line with the approach adopted in other industries regulated by Part 4 of the Commerce Act. Submissions are due 16 January 2026.
Select Committee reports back on Online Casino Gambling Bill
The Governance and Administration Committee has issued its report with a majority recommending that the Online Casino Gambling Bill should be passed. Key recommended amendments include the introduction of community funding and the commencement date for prohibition on conducting online casino gambling without a licence being delayed until 1 December 2026. This Bill would establish a framework for a licensing regime for online casino gambling in New Zealand, with detail to be included in regulations. The Bill provides for up to 15 licences to conduct online casino gambling via a competitive process.
Government introduces Bill to progress Commerce Act reform
The Government has introduced the Commerce (Promoting Competition and Other Matters) Amendment Bill (Commerce Amendment Bill) to progress its previously announced reforms to the Commerce Act. Notably the Commerce Amendment Bill proposes empowering the NZCC to carry out studies of any market, industry or sector and recommend to ministers the development of pro-competition regulation. However, the Commerce Amendment Bill (as currently drafted) will not include mechanisms to implement new regulations following NZCC recommendations. Much like the existing market study powers, the Government would need to consider bespoke legislation to implement any new regulation. Submissions are expected to be due early next year.
See our alert for an overview of the Commerce Amendment Bill.
