Source: Radio New Zealand
RNZ / Alexander Robertson
Commerce Commission chair John Small is encouraging collaboration between industry players where it can drive competition, productivity and economic growth.
While cartel legislation restricts collaboration between competing parties, Small said accommodation and exemptions can be made when the goals are in the public interest.
“A much wider range of practices and structures can also be authorised even if they substantially lessen competition, provided that there are sufficiently large offsetting public benefits,” he said, speaking to a conference aimed at promoting and encouraging competition.
However, he said industry players need to get clearance from the commission before embarking on any discussions.
“If you genuinely believe that collaborating with a rival will be better for New Zealand, give us a call and we’ll be genuinely delighted to help test your thinking and keep you safe.”
Small said there would be winners and losers as market competition increased.
“There’s always a loser when firms capture market share from each other in regular competition.”
However, he said that was not a reason to leave things as they were, given the negative effect of weak competition in critical industries.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand