Competition & Consumer Practice Area: Anti-Competitive Conduct
The Competition & Consumer practice area focuses on ensuring fair play in the market. This is especially important in New Zealand, where we want to make sure that businesses compete fairly and consumers are treated well.
What is Anti-Competitive Conduct?
Anti-competitive conduct happens when businesses try to limit competition. This can lead to higher prices, fewer choices, and lower quality products for consumers. In New Zealand, the Commerce Act 1986 is the main law that helps prevent these unfair practices.
Examples of Anti-Competitive Conduct
- Price Fixing: When companies agree to set the same prices for their products, it stops competition. For example, if all local cafes agree to charge $5 for a coffee, customers have no choice but to pay that price.
- Market Sharing: This is when businesses divide up the market between themselves. For instance, if two grocery stores agree that one will only sell in the north of a city and the other in the south, they are not competing fairly.
- Exclusive Contracts: Sometimes, a business might make a deal that prevents suppliers from selling to anyone else. This can limit choices for consumers. For example, if a popular soft drink company only allows one supermarket to sell its drinks, other stores miss out.
Why is This Important?
Keeping competition fair is crucial for everyone. It helps ensure that consumers can choose from a variety of products at reasonable prices. It also encourages businesses to improve their services and innovate.
How We Help
In the Competition & Consumer practice area, we work to identify and address anti-competitive conduct. This can involve:
- Investigating complaints from consumers or businesses.
- Advising companies on how to comply with competition laws.
- Representing clients in legal cases related to anti-competitive behaviour.
By promoting fair competition, we help create a better marketplace for everyone in New Zealand.