The Government has recently launched an extensive package of competition law changes which give the Commerce Commission new tools and broader powers to scrutinise deals and market conduct.
A bill is due before the end of 2025, with submissions in early 2026 and passage targeted for mid-2026.
The proposed amendments will expand the long-standing “substantial lessening of competition” test. The law will now confirm that it covers creating, strengthening, or entrenching market power. Officials say this is aimed at stopping so-called “killer acquisitions” and serial purchases of smaller rivals.
The Commission will also be able to assess patterns of acquisitions over a three-year period. The reforms “mirror recently implemented changes to Australia’s merger control regime.”
The Commission is now able to accept voluntary behavioural undertakings, rather than blocking a deal outright. It will also gain call-in powers to pause transactions before completion. Complex cases could take up to 160 working days, with a summary decision required within one day and full reasons within 20.
Business groups warn that drawn-out reviews risk delaying legitimate deals. Extended timelines, they argue, could create uncertainty and higher compliance costs.
The reforms introduce a notification system for resale price maintenance and small business collective bargaining, with the Commission able to object if it sees concerns. Broader exemption powers will also apply to low-risk conduct.
On enforcement, the regulator will gain the ability to seek “performance injunctions” and competition rules will explicitly extend to algorithms and AI. A new test for predatory pricing will focus on patterns of below-cost selling, removing the need to show future recoupment.
New Zealand businesses will have a chance to observe their impact before the local reforms are finalised, with Australian changes set to take effect from January 2026. Firms are being advised to revisit acquisition strategies, collaboration plans, and pricing models to prepare for the new regime.