Regulator’s advice on cartels

The Commerce Commission has released guidelines on its approach to authorising some agreements as a result of temporary changes made to the Commerce Act under the Covid-19 Response Act.

The regulator can grant authorisation for agreements between businesses or individuals that are anti-competitive but are otherwise in the public interest. 

Changes to the Act allow it to authorise cartel provisions, waive the $36,800 application fee, issue provisional authorisation and not issue a draft determination before reaching a final decision.

“We recognise businesses may need to enter into agreements quickly as a result of the effects of Covid-19,” says commission chairwoman Anna Rawlings. “The amendments enable us to better respond to the needs of businesses seeking legal certainty through the authorisation process when the agreement is in the public interest. 

“This will help achieve the right balance between ensuring that businesses can enter into agreements that benefit New Zealand, while protecting consumers and competition in the market.”

She adds the new guidelines are designed to assist businesses and individuals by explaining when the commission will use the new provisions. 

“They are general in nature and we intend to take a pragmatic approach to any applications for authorisation we receive. We encourage businesses thinking about applying for an authorisation to get in touch with us and consider seeking independent legal advice.” The guidelines are available on the commission’s website.