The Commerce Act 1986 is a statute of
New Zealand
New Zealand ( mi, Aotearoa ) is an island country in the southwestern Pacific Ocean. It consists of two main landmasses—the North Island () and the South Island ()—and over 700 smaller islands. It is the sixth-largest island coun ...
. It prohibits conduct that restricts competition and purchase of shares or assets where that would lessen competition in a market.
As well as generally governing markets, the Act gives the
Commerce Commission
The Commerce Commission ( mi, Te Komihana Tauhokohoko) is a New Zealand government agency with responsibility for enforcing legislation that relates to competition in the country's markets, fair trading and consumer credit contracts, and regul ...
particular powers in relation to services provided by electricity lines businesses, gas pipeline businesses and airports.
Background
The Commerce Act 1986 represented the first complete
competition law
Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...
legislation in New Zealand. Previously, the government had attempted to manage markets and competition through ad hoc measures such as
price controls
Price controls are restrictions set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of good ...
and anti-
profiteering rules.
The Commerce Act was modelled on the Australian competition legislation that existed at that time, the Trade Practices Act 1974 (now the
Competition and Consumer Act 2010
The ''Competition and Consumer Act 2010'' (CCA) is an Act of the Parliament of Australia. Prior to 1 January 2011, it was known as the ''Trade Practices Act 1974'' (TPA). The Act is the legislative vehicle for competition law in Australia, an ...
), which itself had been inspired by the American legislation of the
Sherman and
Clayton Acts.
See also
*
Commerce Commission
The Commerce Commission ( mi, Te Komihana Tauhokohoko) is a New Zealand government agency with responsibility for enforcing legislation that relates to competition in the country's markets, fair trading and consumer credit contracts, and regul ...
References
{{Reflist
External links
Commerce Act 1986
Statutes of New Zealand
Competition law
1986 in New Zealand law
Business in New Zealand