These Competition Assessment Guidelines will assist public officials, businesses and other interested parties to consider competition at an early stage in decisions and actions that influence markets. They are co-authored by the Commerce Commission and Ministry for Business, Innovation and Employment.
Competition can be described as the process of rivalry between businesses to win and retain customers. It creates incentives for businesses to reduce costs and prices, improve the quality of goods and services and develop and introduce new products, services and technologies.
Competition in markets is a key driver for greater value, innovation and productivity, and therefore of better outcomes for New Zealanders. Government policy and action in markets can affect the incentives of businesses to compete. Sometimes it may be necessary to reduce competition to implement a particular policy, which can create tension between meeting the policy goal and maintaining competition in markets. While some initiatives may stimulate competition, others may have an adverse effect on competition and could undermine many of the benefits the initiative is trying to achieve.
The guidelines are a practical tool to assist you to carry out an initial competition assessment and determine whether any restrictions on competition are necessary to achieve the overarching goal. A quick reference guide provides examples of competition considerations and approaches that can protect competition, where it is feasible.
