The Government has announced it is beefing up the Commerce Act for the first time in nearly 20 years to provide greater protection to the public and more certainty for business.
Economic Growth Minister, Nicola Willis says the changes will provide more certainty and reliability for businesses, and are “what this Government was elected to deliver”.
“Competition is a key driver of growth, innovation and productivity. Consumers and businesses thrive when markets are open and fair. But our current settings are outdated, lack clarity and have led to some of our most important markets being dominated by only a handful of players,” said Ms Willis.
Key changes include:
- Stopping unfair tactics like creeping acquisitions and predatory pricing so genuine competitors can thrive.
- Clearer merger rules to give businesses certainty while keeping markets fair.
- A stronger, better-structured Commerce Commission meaning faster, more transparent decisions.
- Streamlined approval for beneficial collaboration making it easier for businesses to work together where it helps the public.
- Allowing businesses to voluntarily undertake to limit market power as part of merger applications.
“As part of the changes, the Commerce Commission will be strengthened to ensure it can continue to be an effective agency and is fit for purpose for the additional powers it has been given,” said Commerce and Consumer Affairs Minister, Scott Simpson.
“An independent review found the Commerce Commission has outgrown its current structure, with the board handling both governance and regulatory decisions. By separating these functions, the Commission will be able to deliver better outcomes for consumers.
“Competition is needed. However, there is sometimes a benefit to having competitors collaborate where there are public benefits, and no harm is done to competition. The proposed changes will streamline approval for collaboration between businesses.”
The Minister said the Commerce Commission will gain stronger tools, including the ability to pause or ‘call in’ risky mergers before they are completed. This targeted power ensures problematic deals can be properly assessed, he said.
“The Commission will also be able to accept commitments from businesses – known as behavioural undertakings – to help resolve competition concerns arising from a proposed merger. Alongside this, clearer statutory timeframes will support more timely and transparent decisions.”
These changes will ensure the merger regime is fit for purpose, making it easier to identify and stop deals that could harm competition, said Mr Simpson.
“Importantly, these changes lift the bar on which mergers can proceed. This will prevent dominant firms entrenching their power and give businesses and consumers more choice, sharper prices and fairer markets,” he said.
The changes are reflected in amendments to the Commerce Act that will be introduced to Parliament before Christmas and passed by mid-2026.
Minister Willis also released an update today on the Government’s Going For Growth work programme. The Competitive Business Settings update sets out how the Government is making it easier for businesses to operate and grow so they can create more jobs and lift Kiwi incomes.
View Fact sheet for September 2025 competition announcement_0.docx.
