New Zealand Acts

COMMERCE ACT 1986 - SECT 52I

52I Commission inquiry into particular goods or services

1 In conducting an inquiry into particular goods or services, the Commission must consider—

a) whether the test in section 52G is satisfied in relation to the goods or services; and

b) if that test is satisfied, whether the goods or services should be regulated; and

c) if so, how the goods or services should be regulated, including—

i) how the goods or services should be defined; and

ii) which type or types of regulation (as set out in section 52B(2) ) the goods or services should be subject to; and

iii) how that type or those types of regulation should apply to suppliers of the goods or services.

2 As part of an inquiry into particular goods or services, the Commission—

a) must determine (and then apply) input methodologies for the supply of the goods or services, in accordance with subpart 3 ; and

b) must, when carrying out the analysis required by section 52G(1)(c) , undertake a qualitative analysis of all material long-term efficiency and distributional considerations.

3 As part of that qualitative analysis, the Commission must, as far as practicable,—

a) quantify material effects on allocative, productive, and dynamic efficiency; and

b) quantify material distributional and welfare consequences on suppliers and consumers; and

c) assess the direct and indirect costs and risks of any type of regulation considered, including administrative and compliance costs, transaction costs, and spill-over effects.

4 As part of an inquiry, the Commission must, when considering which type of regulation might be imposed,—

a) assess the benefits of imposing different types of regulation in meeting the purpose of this Part against the costs of imposing those types of regulation; and

b) consider what would be the most cost-effective type or types of regulation in the circumstances.

5 During an inquiry, the Commission may have regard to any other matters it considers necessary or desirable for the purpose of the inquiry.

History: Section 52I: inserted, on 14 October 2008, by section 4 of the Commerce Amendment Act 2008 (2008 No 70).