22 Facts About Commerce Commission

1.

Commerce Commission is a New Zealand government agency with responsibility for enforcing legislation that relates to competition in the country's markets, fair trading and consumer credit contracts, and regulatory responsibility for areas such as electricity and gas, telecommunications, dairy products and airports.

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2.

In specific areas where it has regulatory responsibilities, such as electricity and gas, the Commerce Commission has additional enforcement powers to promote competition and protect consumers.

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3.

Commerce Commission was introduced under the Commerce Act 1986 as an integrated regulatory body with responsibilities for competition, economic regulation and consumer protection, modelled after the Australian Trade Practices Commission.

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4.

One key difference between the Australian and New Zealand regimes is that appeals from the Commerce Commission's decisions are decided by the general courts of New Zealand, unlike Australia where appeals are reviewed by a specialist tribunal.

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5.

Commerce Commission is made up of a chairperson and four to six general commissioners.

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6.

The current chairperson of the Commerce Commission is Anna Rawlings, appointed for a three year term in 2019.

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7.

One of the key roles of the Commerce Commission is to ensure markets in New Zealand are competitive, including by investigating anti-competitive behaviour and enforcing compliance.

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8.

The Commerce Commission has a range of enforcement options including the provision of compliance advice or warning letters and by prosecuting a person or business in the High Court.

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9.

The Commerce Commission is responsible for enforcing prohibitions against "restrictive trade practices", which includes cartels or price-fixing behaviour, taking advantage of market power, or resale price maintenance.

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10.

The Commission considered that as a result of these meetings the agencies entered into price-fixing arrangements in breach of section 30 of the Commerce Act, and issued substantial financial penalties against these agencies.

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11.

The Commerce Commission will have new powers under the Search and Surveillance Act 2012 such as the ability to apply for surveillance wiretaps.

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12.

Commerce Commission has a cartel leniency policy to assist in the investigation of anti-competitive arrangements between competitors that are often secret and difficult to detect.

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13.

The Commerce Commission intends to remain the point of contact for applicants seeking either civil leniency or criminal immunity, but the Solicitor-General will be responsible for deciding whether to grant immunity from criminal prosecution.

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14.

Fair Trading Act 1986 was developed alongside the Commerce Commission Act to encourage competition and to protect consumers from misleading and deceptive conduct and unfair trading practices.

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15.

Commerce Commission assumed responsibility for enforcing the major provisions of the Credit Contracts and Consumer Finance Act 2003 on 1 April 2005.

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16.

Commerce Commission has a role in the regulation of some markets where there is little or no competition.

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17.

The markets where the Commerce Commission is currently involved include: electricity transmission and distribution, gas transmission and distribution, telecommunications, airports and the dairy industry.

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18.

Part 4 of the Commerce Commission Act contains specific provisions for regulation in these markets with a purpose of promoting outcomes that are consistent with outcomes produced in competitive markets such that suppliers of regulated goods or services:.

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19.

Commerce Commission has both enforcement and adjudication roles under the Dairy Industry Restructuring Act 2001.

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20.

The Act provides for the Commerce Commission to undertake enforcement action and requires the Commerce Commission to issue determinations to resolve disputes between Fonterra and other parties.

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21.

Commerce Commission has two primary functions under the Telecommunications Act 2001 that help to ensure broadband and mobile markets are competitive.

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22.

The Commerce Commission is responsible for allocating the exact amount telecommunications providers must pay in Government levies each year.

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