The Government is promising changes to the Commerce Act it says will prevent “creeping acquisitions and predatory pricing”.
Economic Growth Minister Nicola Willis and Commerce and Consumer Affairs Minister Scott Simpson said the changes would set out clear rules for mergers, and streamline approvals for business collaboration.
The Commerce Commission would be restructured with stronger tools to seek a High Court injunction to require companies to comply with the act.
Simpson said it would also have the ability to pause or “call in” risky mergers before they are completed.
“This targeted power ensures problematic deals can be properly assessed.”
The changes would set out clear rules for mergers and streamline approvals for business collaboration. (Source: 1News)
The Commission will also be able to accept businesses’ commitments to resolve competition concerns, and the commission’s board would also no longer be responsible for both governance and regulation decisions.
The changes are expected to be introduced by Christmas and pass by the middle of 2026.
Other changes include:
- A new test will clarify when below-cost pricing breaches the Commerce Act, in line with interNational Standards – to combat “predatory” pricing.
- Confidential information provided to the Commerce Commission will be exempt from the Official Information Act for 10 years, and the Commission will be able to issue confidentiality orders for specific classes of information or documents for up to 10 years.
- A statutory notification regime allowing companies to notify the commission about proposed conduct and proceed unless the commission objects, rolling out first for resale price maintenance and small-business collective bargaining.
- The commission will have class exemption powers, enabling it to exempt categories of conduct that are low risk or clearly beneficial.
- Commission will have discretion to waive or reduce application fees.
- Applicants will be able to ask the commission to assess the purpose and necessity of cartel provisions without a full competition impact assessment.
- Clearance and authorisation will be available for arrangements with changing participants over time, to support multi-party initiatives.
- Complex cases will have a 140 to 160-working-day timeframe, with decisions provided within a day and full reasoning provided within 20 working days.
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“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,” Simpson said.
The review – commissioned a year ago – was led by Dame Paula Rebstock with Prof Allan Fels and David Hunt, and found the Commission was performing well
The Commission’s oversight of mergers would be more closely aligned with Australia’s regime to help assess “killer acquisitions” where dominant companies acquire and shut down innovative startups.
It would be able to assess patterns of small acquisitions over three years, addressing concerns in sectors like car parking.
Clearer definitions will be provided for “substantial influence” in partial acquisitions; and make clear that “assets of a business” include rights, infrastructure and land.
“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.”
Willis also released an update on the Government’s Going for Growth programme.
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