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Commerce Act 1986

Regulated goods or services - Regulating particular goods or services - Commission inquiry

52I: Commission inquiry into particular goods or services

You could also call this:

"The Commission checks if certain goods or services need rules to help keep things fair for everyone."

Illustration for Commerce Act 1986

When the Commission looks into particular goods or services, they must think about whether the test in section 52G is met. If it is, they consider whether the goods or services should be regulated. The Commission also thinks about how the goods or services should be regulated, including how they should be defined and which type of regulation they should have, as set out in section 52B(2).

As part of their inquiry, the Commission determines input methodologies for the supply of the goods or services, following subpart 3. They also do a qualitative analysis of efficiency and distributional considerations, as required by section 52G(1)(c). This analysis includes quantifying effects on efficiency and distributional consequences for suppliers and consumers.

The Commission assesses the costs and risks of different types of regulation, including administrative and compliance costs. When considering which type of regulation to impose, they weigh the benefits against the costs and think about the most cost-effective option. During an inquiry, the Commission can also consider any other matters they think are necessary or desirable.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1685445.

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52H: How inquiry triggered, or

"When the government or a special group decides to investigate a problem"

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52J: Process of inquiry, or

"How the Commission investigates and gathers ideas from people to make a decision"

Part 4Regulated goods or services
Regulating particular goods or services: Commission inquiry

52ICommission inquiry into particular goods or services

  1. In conducting an inquiry into particular goods or services, the Commission must consider—

  2. whether the test in section 52G is satisfied in relation to the goods or services; and
    1. if that test is satisfied, whether the goods or services should be regulated; and
      1. if so, how the goods or services should be regulated, including—
        1. how the goods or services should be defined; and
          1. which type or types of regulation (as set out in section 52B(2)) the goods or services should be subject to; and
            1. how that type or those types of regulation should apply to suppliers of the goods or services.

            2. As part of an inquiry into particular goods or services, the Commission—

            3. must determine (and then apply) input methodologies for the supply of the goods or services, in accordance with subpart 3; and
              1. must, when carrying out the analysis required by section 52G(1)(c), undertake a qualitative analysis of all material long-term efficiency and distributional considerations.

                1. As part of that qualitative analysis, the Commission must, as far as practicable,—

                2. quantify material effects on allocative, productive, and dynamic efficiency; and
                  1. quantify material distributional and welfare consequences on suppliers and consumers; and
                    1. assess the direct and indirect costs and risks of any type of regulation considered, including administrative and compliance costs, transaction costs, and spill-over effects.

                      1. As part of an inquiry, the Commission must, when considering which type of regulation might be imposed,—

                      2. assess the benefits of imposing different types of regulation in meeting the purpose of this Part against the costs of imposing those types of regulation; and
                        1. consider what would be the most cost-effective type or types of regulation in the circumstances.

                          1. During an inquiry, the Commission may have regard to any other matters it considers necessary or desirable for the purpose of the inquiry.

                          Notes
                          • Section 52I: inserted, on , by section 4 of the Commerce Amendment Act 2008 (2008 No 70).