New Zealand: Opened consultation on Review of the Commerce Act 1986 including merger control regulation

On 5 December 2024, the Ministry of Business, Innovation, and Employment opened a public consultation on the review of the current merger control regulations established by the Commerce Act 1986. The consultation closes on 7 February 2025. The proposed reforms include refining the "substantial lessening of competition test" by explicitly considering “creeping acquisitions” and nascent competition threats. For partial acquisitions, reforms suggest defining a "substantial degree of influence" with explicit criteria such as veto rights to improve predictability. To reduce uncertainty, the scope of “assets of a business” could be clarified by simplifying terminology or providing detailed definitions. For mergers outside the clearance process, options include granting the Commission powers to pause or investigate non-notified mergers, such as through a "call-in" or mandatory notification for specific companies. Lastly, the proposed reforms include measures on allowing behavioral commitments to address post-merger competition concerns.