Press Statement: Initiative Welcomes Commerce Commission Governance Reform, Cautions on Overreach in Commerce Act Changes
Wellington (Tuesday, 16 September 2025) – The New Zealand Initiative welcomes the Government’s decision to strengthen the governance of the Commerce Commission, describing it as an important step towards world-class regulatory practice.
The Initiative’s 2018 report Who Guards the Guards? and its 2021 follow-up Reassessing the Regulators recommended replacing the Commission’s outdated commissioner model with a modern board structure.
“Separating governance from executive decision-making will deliver clearer accountability, broader expertise and better outcomes,” said Roger Partridge, Chair and Senior Fellow of The New Zealand Initiative.
Appointments and monitoring
The Initiative emphasised that governance structures must be supported by high-quality appointments and effective external oversight.
“Good governance frameworks can only do so much,” Partridge said. “The calibre of appointments is critical, and our research shows external accountability remains the weakest part of New Zealand’s regulatory system.”
The Initiative reiterated its call for more transparent regulatory governance appointment processes and periodic expert reviews of the performance of the Commission, the Reserve Bank and the Financial Markets Authority.
Risks in the wider Commerce Act reforms
While supporting governance reform, the Initiative was more cautious about other suggested changes.
“Competition law must ultimately benefit consumers over the longer term,” said Dr Eric Crampton, the Initiative’s Chief Economist. “Changes to the merger test and new rules on serial acquisitions and predatory pricing risk penalising efficient business conduct and deterring investment. Markets work best when firms can compete vigorously, grow, and innovate – bringing consumer benefits. We will look forward to seeing the draft legislation.”
ENDS
Roger Partridge and Dr Eric Crampton are available for comment. To schedule an interview, please contact:
Jamuel Enriquez, Marketing and Communications Manager
E: jamuel.enriquez@nzinitiative.org.nz
P: 021 022 34451
_______________________________________________________________________________
About The New Zealand Initiative
The New Zealand Initiative is an evidence-based think tank and research institute contributing to public policy discussion.
Supported by the nation’s leading visionaries, business leaders and political thinkers, we are committed to making New Zealand a better country for all its citizens with a world-class education system, affordable housing, a healthy environment, sound public finances and a stable currency.
https://www.nzinitiative.org.nz | Subscribe to Insights, our weekly newsletter