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Commerce Act 1986

Restrictive trade practices - Misuse of market power

36: Misuse of market power

You could also call this:

"Don't use your market power to stop others from competing with you fairly."

Illustration for Commerce Act 1986

If you have a lot of power in a market, you must not do things that stop others from competing with you. This means you cannot do things that make it hard for others to sell their goods or services in that market or in other markets. You are considered to have a lot of power in a market if you have a substantial degree of power in the market, or if you and other connected people together have a substantial degree of power in the market.

When we talk about a substantial degree of power in a market, it means you have a lot of control over what happens in that market. This can be because of your own power, or because you have power together with other people or companies you are connected to.

You can find more information about changes to this law in the Commerce Amendment Act 2022, which changed this section of the law on 5 April 2023.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM88281.

Topics:
Business > Fair tradingMoney and consumer rights > Consumer protection
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35: Contracts or covenants subject to authorisation not prohibited under certain conditions, or

"Some agreements are allowed if they follow special rules"

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36A: Misuse of market power in trans-Tasman markets, or

"Don't use your market power to stop others competing with you in New Zealand or Australia."

Part 2Restrictive trade practices
Misuse of market power

36Misuse of market power

  1. A person that has a substantial degree of power in a market must not engage in conduct that has the purpose, or has or is likely to have the effect, of substantially lessening competition in—

  2. that market; or
    1. any other market in which the person, or an interconnected person,—
      1. supplies or acquires, or is likely to supply or acquire, goods or services; or
        1. supplies or acquires, or is likely to supply or acquire, goods or services indirectly through 1 or more other persons.

        2. In this section, a person has a substantial degree of power in a market if—

        3. the person has a substantial degree of power in the market; or
          1. the person, together with 1 or more interconnected persons, has a substantial degree of power in the market; or
            1. 1 or more interconnected persons of the person have a substantial degree of power in the market; or
              1. 2 or more interconnected persons together have a substantial degree of power in the market.

                Notes
                • Section 36: replaced, on , by section 17 of the Commerce Amendment Act 2022 (2022 No 11).