New Zealand Acts

COMMERCE ACT 1986

- As at 5 April 2025
- Act 5 of 1986

TABLE OF PROVISIONS

           Long Title

   1.      Short Title and commencement
   1A.     Purpose
   2.      Interpretation
   3.      Certain terms defined in relation to competition
   3A.     Commission to consider efficiency
   4.      Application of Act
   5.      Application of Act to the Crown
   6.      Application of Act to Crown corporations
   6A.     Special provisions relating to application of Act to the Crown in right of Australia and to Australian Crown corporations
   6B.     Crown and Crown corporations not immune from jurisdiction in relation to certain provisions of Competition and Consumer Act 2010
   6C.     Transitional, savings, and related provisions
   6C.     Application of Evidence Amendment Act 1980
   7.      Relationship with law on restraint of trade

   PART 1 - The Commerce Commission

   8.      Establishment of Commission
   8A.     Application of Crown Entities Act 2004
   9.      Membership of Commission
   10.     Terms and conditions of appointment
   11.     Associate members
   12.     Chairperson and deputy chairperson
   13.     Termination of appointment of members
   14.     Disclosure of financial interests
   15.     Meetings of Commission
   16.     Chairperson may direct Commission to sit in Divisions
   17.     Assent to determination
   18.     Officers and employees
   18A.    Personnel policy
   18B.    Equal employment opportunities
   18C.    Choice of procedure
   18D.    Superannuation and retiring allowances
   19.     Money to be appropriated by Parliament for purposes of this Act
   20.     Funds of Commission
   21.     Bank accounts
   22.     Crown entity
   23.     Investment of money
   24.     Exemption from income tax
   25.     Functions of Commission in relation to dissemination of information
   26.     Commission to have regard to economic policies of Government

   PART 2 - Restrictive trade practices
   Note

   27.     Contracts, arrangements, or understandings substantially lessening competition prohibited
   28.     Covenants substantially lessening competition prohibited
   28A.    Certain grocery-related covenants are treated as prohibited and unenforceable
   28B.    Process for voluntary removal of grocery-related covenant from register of land
   28C.    Process for designations for purpose of section 28A
   28D.    Commission may require designated grocery retailer to supply information about contract, etc, to which section 28A may apply
   29.     Contracts, arrangements, or understandings containing exclusionary provisions prohibited
           Note
   30.     Contracts, arrangements, understandings, or covenants containing cartel provisions prohibited
   30A.    Meaning of cartel provision and related terms
   30B.    Additional interpretation relating to cartel provisions
   30C.    Cartel provisions generally unenforceable
   31.     Exception for collaborative activity
   32.     Exception for vertical supply contracts
   33.     Exception for joint buying and promotion agreements
   34.     Certain provisions of covenants with respect to prices deemed to substantially lessen competition
           Note
   35.     Contracts or covenants subject to authorisation not prohibited under certain conditions
           Note
   36.     Misuse of market power
   36A.    Misuse of market power in trans-Tasman markets
   36B.    Purposes may be inferred
   37.     Resale price maintenance by suppliers prohibited
   38.     Resale price maintenance by others prohibited
   39.     Recommended prices
   40.     Withholding the supply of goods
   41.     Preventing the supply of goods
   42.     Special evidentiary provisions in respect of certain resale price maintenance practices
           Note
   43.     Statutory exceptions
   44.     Other exceptions
   44A.    Exceptions in relation to international liner shipping services
   44B.    Further exception in relation to international liner shipping services (price fixing in relation to space on ship)
   45.     Exceptions in relation to intellectual property rights
   46.     Saving in respect of business acquisitions

   PART 3 - Business acquisitions
   Note

   47.     Certain acquisitions prohibited
   47A.    Declaration relating to acquisition by overseas person
   47B.    Orders against New Zealand bodies corporate following declaration under section 47A
   47C.    Application by Commission for declaration or order
   47D.    Revocation and variation of declarations and orders
   48.     Bare transfer of market dominance excluded
   49.     Application to building societies
   50.     Certain merger or takeover proposals require clearance or authorisation
   51.     Contracts subject to condition of clearance or authorisation

   PART 3A - Competition studies
   Note

   48.     Interpretation
   49.     Functions of Commission under this Part
   50.     Commission may carry out competition study
   51.     Minister may require Commission to carry out competition study
   51A.    Competition study terms of reference
   51B.    Preparation of competition report
   51C.    Consultation on draft competition report
   51D.    Publication and status of competition report
   51E.    Minister must respond to competition report

   PART 4 - Regulated goods or services
   Note

           SUBPART 1 - Preliminary provisions
           Note

   52.     Overview of Part
   52A.    Purpose of Part
   52B.    Outline of Part
   52C.    Interpretation
   52D.    Meaning and application of claw-back

           SUBPART 2 - Regulating particular goods or services
           Note

   52E.    Overview of process if regulation imposed on goods or services
   52F.    Effect of goods or services being subject to regulation
   52G.    When goods or services may be regulated
           Note
   52H.    How inquiry triggered
   52I.    Commission inquiry into particular goods or services
   52J.    Process of inquiry
   52K.    Commission's recommendation following inquiry
           Note
   52L.    Minister's consideration
   52M.    Minister's decision and recommendation
   52N.    Order in Council imposing regulation
   52O.    Revocation or amendment of Order in Council
           Note
   52P.    Determinations by Commission under this section
   52Q.    Amendment of section 52P determination

           SUBPART 3 - Input methodologies
           Note

   52R.    Purpose of input methodologies
   52S.    How published input methodologies apply
   52T.    Matters covered by input methodologies
   52U.    When input methodologies must be determined
   52V.    Commission process for determining input methodologies
   52W.    Status of input methodologies, amendments, and revocations
   52X.    Amendment of input methodologies
   52Y.    Review and date of publication of input methodologies
           Note
   52Z.    Appeals against input methodology determinations
   52ZA.   Process for appeals
   53.     Input methodology applies pending outcome of appeal

           SUBPART 4 - Information disclosure regulation
           Note

   53A.    Purpose of information disclosure regulation
   53B.    Effect of being subject to information disclosure regulation
   53C.    Section 52P determination to set out information disclosure requirements
   53D.    Consolidated information may also be required
   53E.    Charge for providing copies to public
   53F.    Limited exception to obligation to apply input methodologies

           SUBPART 5 - Negotiate/arbitrate regulation
           Note

   53G.    Purpose of negotiate/arbitrate regulation
   53H.    Overview of negotiate/arbitrate regulation
   53I.    Section 52P determination to set out requirements for application of negotiate/arbitrate regulation
   53J.    Compulsory arbitration

           SUBPART 6 - Default/customised price-quality regulation
           Note

   53K.    Purpose of default/customised price-quality regulation
   53L.    Overview of default/customised price-quality regulation
   53M.    Content and timing of price-quality paths
   53N.    Monitoring compliance with price-quality paths
           Note
   53O.    Section 52P determination to set out requirements of default price-quality paths
   53P.    Resetting starting prices, rates of change, and quality standards
           Note
   53Q.    Supplier may propose customised price-quality path
   53R.    Effect of making proposal for customised price-quality path
   53S.    Preliminary assessment of proposal
   53T.    Process and timing for assessing proposal
   53U.    Extension of time frames
   53V.    Determination setting customised price-quality path
   53W.    Term of customised price-quality paths
   53X.    What happens when customised price-quality path ends
   53Y.    Commission's costs relating to assessing, setting, and reconsidering customised price-quality path
   53Z.    Prioritisation by Commission
   53ZA.   What happens if Commission does not make decision within time frame
           Note
   53ZB.   What happens to price-quality paths if input methodologies change

           SUBPART 7 - Individual price-quality regulation
           Note

   53ZC.   Price-quality path for individual businesses

           SUBPART 8 - Miscellaneous provisions
           Note

   53ZD.   Powers of Commission under this Part
   53ZE.   Levies
   53ZF.   Material may be incorporated by reference
   53ZG.   Power to exempt disclosure of commercially sensitive information

           SUBPART 9 - Electricity lines services
           Note
           Note

   54.     Overview of how subpart applies
   54A.    Overview of when subpart applies
   54B.    Interpretation for subpart
   54C.    Meaning of electricity lines services
   54D.    Definition of consumer-owned
           Note
   54E.    Electricity lines services declared to be regulated
   54F.    All electricity lines services are subject to information disclosure regulation
   54G.    Certain electricity lines services are also subject to default/customised price-quality regulation
   54H.    How exempt status can be lost and default/customised price-quality regulation can be applied to consumer-owned suppliers
   54I.    Commission must make section 52P determination specifying how subpart applies
   54J.    Section 52P determinations setting out default price-quality paths applying from 1 April 2009
   54K.    Section 52P determinations setting out default price-quality paths applying from 1 April 2010
           Note
   54L.    Administrative settlements made before 1 April 2009 (other than with Transpower)
   54M.    Administrative settlements with Transpower made before 1 April 2009
   54N.    Breaches of thresholds and default price-quality paths before 1 April 2010
   54O.    Breaches of control imposed, or administrative settlements entered into, after 1 April 2009
   54P.    Proposals for customised price-quality paths
           Note
   54Q.    Energy efficiency
           Note
   54R.    Approval of Transpower's grid upgrade plans
   54S.    Commission to prepare input methodology for capital expenditure proposals
   54T.    Procedure before jurisdiction order can be made
   54U.    Levies during transition in jurisdiction
           Note
   54V.    Impact of certain decisions made under Electricity Industry Act 2010
           Note
   54W.    Savings provision relating to existing information disclosure requirements
   54X.    Savings provision for existing levy regulations for electricity lines businesses

           SUBPART 10 - Gas pipeline services
           Note
           Note

   55.     Overview of subpart
   55A.    Meaning of gas pipeline services
           Note
   55B.    Gas pipeline services declared to be regulated
   55C.    All gas pipeline services are subject to information disclosure regulation
   55D.    All gas pipeline services are subject to price-quality regulation
   55E.    Commission must make section 52P determination specifying how subpart applies
   55F.    Section 52P determinations setting out first default price-quality paths
           Note
   55G.    Existing order, authorisations, and undertakings continue to apply until 1 July 2012 (or earlier expiry)
   55H.    How price-quality regulation under this Part applies after 1 July 2012 (or earlier expiry)
           Note
   55I.    Impact of certain decisions made under Gas Act 1992
           Note
   55J.    Savings provision until Commission publishes information disclosure requirements
   55K.    Savings provision for existing levy regulations for services controlled under Commerce (Control of Natural Gas Services) Order 2005

           SUBPART 11 - Airport services
           Note
           Note

   56.     Overview of subpart
   56A.    Interpretation
           Note
   56B.    Specified airport services declared to be regulated
   56C.    Specified airport services subject to information disclosure regulation
   56D.    Specified airport services subject to additional regulation if imposed by Order in Council
           Note
   56E.    Duty to supply information to Secretary
           Note
   56F.    How inquiry triggered
   56G.    Commission inquiry
   56H.    Commission’s recommendations following inquiry
           Note
   56I.    Minister must consider Commission’s recommendation
   56J.    Minister’s decision and recommendation
   56K.    Order in Council imposing additional type of regulation
   56L.    Commission determination about how regulation applies
           Note
   56M.    Order in Council declaring specified airport services
           Note
   56N.    Subpart 2 not limited
   57.     Commission process
   57A.    Technical provisions relating to declaration of control
   57B.    Records to be kept for control purposes
   57C.    Other Acts relating to price control not affected
   57CA.   Impact of certain decisions made under Gas Act 1992

   PART 4A - Provisions applicable to electricity industry
   Note

   57D.    Interpretation
   57DAA.  Meaning of electricity lines business
   57DAAB. Meaning of electricity supply business
   57DA.   Body that exercises jurisdiction under this Part
   57DB.   Transfer of jurisdiction in respect of Transpower
   57DC.   Transfer of jurisdiction relating to other large electricity lines businesses
   57DD.   Procedure before jurisdiction order can be made
   57DE.   Levies during transition in jurisdiction
   57DF.   Ministerial powers

           SUBPART 1 - Controlled goods or services
           Note

   57E.    Purpose
   57F.    Commission, not Minister, may declare that goods or services supplied by large electricity lines businesses are controlled
   57G.    Thresholds for declaration of control
   57GA.   Incorporation by reference of material in thresholds
   57GB.   Effect of amendments to, or replacement of, material incorporated by reference in thresholds
   57GC.   Amendments to, or replacement of, material incorporated by reference to be of same general character as original material
   57GD.   Proof of material incorporated by reference
   57GE.   Effect of expiry of material incorporated by reference
   57GF.   Requirement to consult
   57GG.   Access to material incorporated by reference
   57H.    Process for making decisions on declaration of control
   57I.    Process before declaration made
   57J.    Effect of declaration of control
   57K.    Priorities
   57L.    Maximum of 5 years for duration of declaration
   57M.    Authorisations and undertakings
   57MA.   Impact of certain decisions made under Electricity Act 1992
   57N.    Commission may lift control

           SUBPART 2 - Transpower's pricing methodology
           Note

   57O.    Commission may be required to authorise Transpower's pricing methodology
   57P.    Authorisations in respect of Transpower's pricing methodology
   57Q.    Authorisations and undertakings
   57R.    Enforcement of authorisations
   57S.    Revocation of authorisations

           SUBPART 3 - Information disclosure
           Note

   57T.    Information disclosure
   57U.    Information to be supplied to Commerce Commission
   57V.    Commerce Commission to publish summaries
   57W.    Reasonable charge may be imposed for providing copies of statements

           SUBPART 4 - Asset valuations
           Note
           Note

   57X.    Purpose of recalibrations
   57Y.    Interpretation
   57Z.    Large electricity line owners must supply valuation to Commerce Commission
   57ZA.   Comprehensive audit of asset values of large electricity line owners
   57ZB.   Procedure after audit of asset values carried out
   57ZC.   Outcome of audit of asset values
           Note
   57ZD.   Review of valuation methodologies
   57ZE.   Process when carrying out review of valuation methodologies

           SUBPART 5 - General provisions
           Note

   57ZF.   Powers of Commission
   57ZG.   Powers of entry and inspection
   57ZH.   Authorised persons to prove identity
   57ZI.   Offence to obstruct authorised persons
   57ZJ.   Other offences
   57ZK.   Levy of electricity lines businesses

   PART 5 - Authorisations and clearances

   58.     Commission may grant authorisation for restrictive trade practices
   58A.    Effect of authorisation
   58B.    Additional provisions relating to authorisations
   59.     Contracts or covenants subject to authorisation not prohibited under certain conditions
   59A.    When Commission may grant authorisation
   59B.    Contraventions not prevented by granting of authorisation under section 59 or section 59A
   60.     Procedure for applications for authorisation of restrictive trade practices
   61.     Determination of applications for authorisation of restrictive trade practices
   62.     Commission to prepare draft determination in relation to restrictive trade practices
   63.     Commission may grant provisional authorisation
   64.     Procedure at conference
   65.     Commission may vary or revoke authorisations
   65AAA.  Commission may grant interim authorisation
   65AA.   Applications during epidemic period
   65AB.   Modifications in relation to application under section 65AA
   65AC.   Modifications in relation to certain applications made during epidemic period
   65AD.   Provisional authorisations for certain applications made during epidemic period
   65AE.   Repeal of sections 65AA to 65AE
   65A.    Commission may give clearances relating to cartel provisions
   65B.    Effect of clearance under section 65A
   65C.    Procedures relating to clearances
   65D.    Revocation of clearances
           Note
   66.     Commission may give clearances for business acquisitions
   67.     Commission may grant authorisations for business acquisitions
   68.     Provisions applying to applications for clearances and authorisations for business acquisitions
   69.     Effect of clearance or authorisation
   69A.    Commission may accept undertakings
   69AB.   Authorisation or clearance void if undertaking contravened
   69AC.   Variation of undertaking
   69B.    Conferences in relation to business acquisitions
           Note
   70.     Authorisations in respect of prices, revenues, and quality standards
   70A.    Considerations to be observed by Commission
   70B.    Procedure for making authorisations
   70C.    Remedies and penalties if overcharging or quality standards breached
   70D.    Terms of authorisations
   70E.    Investigations and audits
   70F.    Revocation and amendment of authorisations
   71.     Provisional authorisations
   72.     Alternative undertakings
   73.     Conferences in relation to authorisations about controlled goods or services
   74.     Levies

   PART 6 - Enforcement, remedies, and appeals
   Note

   74AA.   Commission may accept undertakings
   74A.    Commission may accept undertakings
   74B.    Matters included in undertakings
   74C.    Enforcement of undertakings
   74D.    Pecuniary penalties for contravention of cease and desist order
   75.     Jurisdiction of High Court
   76.     Jurisdiction of District Court
   77.     Additional lay members of High Court for purposes of appellate jurisdiction in respect of Commission determinations
   78.     Lay members of High Court in certain cases
   79.     Evidence not otherwise admissible
           Note
   79A.    Proceedings for pecuniary penalties
   79B.    Relationship between pecuniary penalties and criminal liability
   80.     Pecuniary penalties relating to restrictive trade practices
   80A.    Restriction on indemnities relating to contraventions of section 30
   80B.    Pecuniary penalties for contravention of section 80A
   80C.    Court may order certain persons to be excluded from management of body corporate
   80D.    Application for order under section 80C
   80E.    Offence to act in contravention of order made under section 80C
   81.     Injunctions may be granted by court for contravention of Part 2
   82.     Actions for damages for contravention of Part 2
   82A.    Exemplary damages for contravention of Part 2
   82B.    Offence relating to cartel prohibition
   82C.    Defence relating to exceptions to cartel prohibition
   82D.    Disclosure by defendant in cartel prosecution
   82E.    Consequences of failure to disclose under section 82D
           Note
   83.     Pecuniary penalties relating to business acquisitions
   84.     Injunctions may be granted by court for contravention of Part 3 or undertaking
   84A.    Actions for damages for contravention of Part 3
   85.     Court may order divestiture of assets or shares in respect of contravention of section 47
   85A.    Pecuniary penalties for contravention of undertaking
   85B.    Court may order divestiture of assets or shares in respect of contravention of undertaking
   85C.    Matters court must not take into account under sections 85A and 85B
           Note
   86.     Pecuniary penalty for contravening information disclosure requirement
   86A.    Order requiring information disclosure requirement to be complied with
   86B.    Offences relating to information disclosure regulation
   86C.    Orders where negotiate/arbitrate regulation applies
   87.     Pecuniary penalty for contravening price-quality requirements
   87A.    Compensation for contravention of price-quality requirement
   87B.    Offence relating to price-quality regulation
   87C.    Injunction and other orders relating to price-quality regulation
   88.     General provisions relating to granting of injunctions
   88A.    When undertaking as to damages not required by Commission
   89.     Other orders
   90.     Conduct by employees, agents, and others
   91.     Appeals in relation to determinations by Commission
   92.     Persons entitled to appeal
   93.     Determination of appeals
   94.     Court may refer appeals back for reconsideration
   95.     Provisions pending determination of appeal
   96.     Court may order proceedings to be heard in private
   97.     Appeal to Court of Appeal in certain cases

   PART 7 - Miscellaneous provisions
   Note

   98.     Commission may require person to supply information or documents or give evidence
   98A.    Power to search
   98B.    Powers conferred by warrant
   98C.    Warrant to be produced
   98D.    Other duties of person who executes a warrant
   98E.    Duty to assist
   98F.    Power to inspect and take copies of documents, etc
   98G.    Commission may exercise powers notwithstanding other proceedings
   98H.    Supply of information and documents in relation to section 36A
   99.     Powers of Commission to take evidence
           Note
   99AA.   Sharing of information and documents with public service agencies, statutory entities, Reserve Bank, and New Zealand Police
   99AB.   Commission may impose conditions on provision of information or documents
           Note
   99A.    Commission may receive information and documents on behalf of Australian Competition and Consumer Commission
   99B.    Purpose of sections 99C to 99P (which relate to assistance to overseas regulators)
   99C.    Definitions of terms used in sections 99B to 99P
   99D.    Restrictions on providing compulsorily acquired information and investigative assistance
   99E.    Government-to-government co-operation arrangements
   99F.    Regulator-to-regulator co-operation arrangements
   99G.    Content of co-operation arrangements
   99H.    Procedures relating to co-operation arrangements
   99I.    Providing compulsorily acquired information and investigative assistance
   99J.    Conditions on providing compulsorily acquired information and investigative assistance
   99K.    Notice to persons affected by provision of information
   99L.    Reporting on use of co-operation arrangements
   99M.    Sharing of non-compulsorily acquired information not affected
   99N.    Information provided by consent
   99O.    Part 4 information not to be provided
   99P.    Maintenance of privilege
           Note
   100.    Powers of Commission to prohibit disclosure of information, documents, and evidence
   100A.   Commission may state case for opinion of High Court
   101.    Notices
   102.    Service of notices
   103.    Offences
   104.    Determinations of Commission
   105.    Restriction on delegation
   106.    Proceedings privileged
   106A.   Judicial notice
   107.    Cartel prosecutors panel
   107.    Annual report
   108.    Regulations
   109.    Commission may prescribe forms
   110.    Repeals, revocations, savings, and consequential amendments
   111.    Transitional provisions in respect of certain contracts, arrangements, or understandings
   112.    Transitional provisions in respect of goods and services subject to price control under Commerce Act 1975
   113.    Transitional provisions in respect of goods and services subject to price restraint under regulations made under Commerce Act 1975
   114.    Transitional provisions in respect of milk pricing
   115.    Savings in respect of certain provisions of Commerce Act 1975
   116.    Winding up of Commerce Commission established under Commerce Act 1975
   117.    Members of Commerce Commission established under Commerce Act 1975 deemed to be members of Commission
   118.    Lay members of High Court appointed pursuant to Commerce Act 1975 deemed to be lay members of High Court appointed under this Act
           SCHEDULE 1AA
           SCHEDULE 1
           SCHEDULE 2
           SCHEDULE 3
           SCHEDULE 4
           SCHEDULE 5
           SCHEDULE 6