Decision to extend life of key local council building consent software good for competition, says ComCom
Published06 Dec 2024
The Commerce Commission today welcomed the decision by Objective Corporation Solutions NZ Limited to extend the life of its building consent management software GoGet from 31 March 2026 to 30 June 2026, saying it preserves competition for a key tool used by local councils.
Objective’s GoGet building consent processing software integrates with lodgement systems to provide a specialised end-to-end building consent software solution for building consent authorities (BCAs). It currently competes with Objective’s other end-to-end building consent software solutions, Objective Build (and previously Objective Alpha). While there are alternative software solutions in development, there is currently no other viable rival end-to-end product widely available.
Based on evidence provided from other software providers, government agencies, and a large number of BCAs, the Commission was concerned that the 31 March 2026 timeframe for decommissioning gave GoGet customers insufficient time to find an alternative solution.
As a result of the concerns raised by the Commission, Objective has proactively decided to extend support and maintenance for GoGet until 30 June 2026. The extension gives BCAs an additional full financial year to assess their options and migrate to their chosen software platform, ensuring they realise the full benefits of competition between solution providers. The new decommissioning date aligns with the financial planning timelines of local councils, coinciding with the end of their financial years, and also gives software developers additional time to develop alternatives to Objective products.
As a result of the changes proposed by Objective, the Commission has closed its investigation into the matter. We note that the Commission has not formed any views on whether or not Objective’s previous plan to “end of life” GoGet on 31 March 2026 breached the Commerce Act 1986 (or any other laws we enforce), and we acknowledge Objective’s constructive and cooperative engagement with our investigation, including its voluntary decision to extend the “end of life” of GoGet.
The Commission’s investigation was under the recently amended section 36 of the Commerce Act, which prohibits misuse of market power.
Background
Section 36 of the Commerce Act prohibits firms with substantial market power from misusing that market power. Section 36 has recently been amended (from April 2023) to prohibit firms with substantial market power from engaging in conduct with the purpose, effect or likely effect of substantially lessening competition. More information about the ‘new’ section 36 can be found in the Commission’s Misuse of Market Power Guidelines.