Relevant legislation and statutory standards

New Zealand’s competition (antitrust) laws are contained in the Commerce Act 1986 (‘the Commerce Act’). The Commerce Act deals with restrictive trade practices, mergers and potential regulatory control. The purpose of the Commerce Act is ‘[t]o promote competition in markets for the long-term benefit of consumers within New Zealand’. It is based largely on the Australian Trade Practices Act 1974, which in turn is based on principles derived from United States antitrust jurisprudence.

Prior to its enactment, the New Zealand economy was characterised by price controls, government involvement in private enterprises, licensing and regulation of monopolies, and widespread import licensing and tariffs designed to protect domestic producers. The rapid deregulation of the New Zealand economy from 1984, which began with the election of the fourth Labour government, created a need to establish strong and credible competition laws to replace the scaled-back (and, in many cases, eliminated) level of central government involvement.