In this episode, M&A Partner Tayla Johnston is joined by Competition Partner Jennifer Hambleton to delve into the evolving landscape of competition law in New Zealand. Together they discuss the latest developments in competition law, including the Government’s review of the Commerce Act, merger reforms, cartel enforcement, and sector-specific regulations. They also touch on the implications of these changes for businesses and the expected increase in enforcement actions by the Commerce Commission.

[00:12] Tayla introduces the topic of the evolving competition law landscape and Jennifer provides an overview of the New Zealand Government’s efforts to reshape the competitive environment, focusing on improving competition in overly concentrated markets. 

[01:12] Jennifer explains the review of the Commerce Act by the Ministry of Business, Innovation and Employment (MBIE). They discuss the goals of the review: enhancing consumer choice, promoting innovation, and lowering prices.

[01:45] Tayla and Jennifer discuss the upcoming merger reforms in New Zealand and Australia. Jennifer outlines the potential changes to how the Commerce Commission reviews mergers and acquisitions. They also discuss the voluntary vs. mandatory notification regime and the concept of creeping acquisitions. 

[03:55] Jennifer explains the concept of creeping acquisitions and the potential regulatory response. They discuss the benefits of aligning New Zealand's laws with Australia's approach to creeping acquisitions.

[04:54] Jennifer discusses the potential new powers for the Commerce Commission, including the ability to call in transactions and designate certain companies for mandatory notification. Jennifer clarifies that no final decisions have been made yet and explains the current stage of the review process and the expected timeline for cabinet decisions.

[06:57] Tayla and Jennifer discuss the enforcement of cartel conduct, including the first criminal cartel prosecution in New Zealand. Jennifer highlights the Commerce Commission's ongoing prioritisation of cartel cases and the expected increase in criminal prosecutions.

[08:08] Jennifer provides an update on the intense scrutiny of the grocery sector by the Commerce Commission and the Government. Discussion on the review of the grocery supply code and the inquiry into the wholesale supply of groceries.

[09:40] Jennifer discusses the importance of beneficial collaborations in the energy and resources sector and explains the Government's consultation on regulatory options to facilitate competitor collaborations without breaching competition law.

[10:55] Tayla and Jennifer discuss the expected increase in spending on litigation and enforcement action by the Commerce Commission. Jennifer explains the minister's directive for the Commission to take more cases and potentially harder cases.

Information in this episode is accurate as at the date of recording Friday, 21 February 2025.

Please contact Tayla Johnston or Jennifer Hambleton, or our Corporate team if you need legal advice and guidance on any of the topics discussed in the episode. 

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