Why the Commerce Commission is important for Whanau Māori

Matthew Tukaki Why the Commerce Commission is important for Whanau Māori

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The Maori economy is growing and growing – some estimates putting it between 130-180 Billion Dollars. “Well Kia ora e te iwi, nau mai hoki mai ki te hōtaka o Waatea Mornings. Today we’re joined by the Chair of the Commerce Commission, Dr John Small. The Commission plays a big role in making sure markets are fair and with the growth behind the Maori economy and Kaupapa ranging from supermarkets to electricity, fuel, and mobile phone; we thought it was important to get to know the commission and its Chair a little more. With cost-of-living pressures biting hard across Aotearoa, we thought it’s time to find out what’s being done to keep things fair for consumers – including whānau Māori. Joining me for a korero is Dr John Small who was appointed Chair in December 2022, and has been a Commissioner since June 2020. John is the Founding Director of economic consultancy firm, Covec, and was also the former Head of the University of Auckland’s Economics Department. Like many of us he comes from a big family! The first time he came to Tamaki Makarau it was to support the occupation at Bastion Point and he was arrested a couple of times during the 81 Springbok tour.”

In a wide ranging interview, Matthew Tukaki, sat down with Dr John Small to talk the “backstory”, understanding our recent past to better plot our future and why the work of the commission is so important.

The Commerce Commission is an integral part of the economy ensuring there is fairness in the market, competition policy and more. When the Commerce Commission was established in 1986, its founding legislation – the Commerce Act and Fair Trading Act – did not include explicit references to Māori, Te Tiriti o Waitangi, or tikanga Māori.
This reflected a broader pattern of the time: economic regulation was largely seen as culturally neutral, focused on competition and efficiency rather than social or Treaty-based obligations.

However, even in this early period, Māori businesses were beginning to re-emerge as economic forces – particularly following the first major Treaty settlements of the 1990s. Iwi entities started investing in sectors such as fisheries, forestry, property, and energy – many of which fell within the Commerce Commission’s regulatory scope.

This created a new dynamic: Māori were not only consumers, but also major market participants, requiring fair and transparent regulation.

By the 2000s, the Māori economy was growing rapidly – estimated at over $16 billion by 2010 – and becoming increasingly sophisticated.
The Commission began to encounter Māori organisations as:

• Businesses seeking merger clearances (for example, iwi consortiums in agriculture or tourism),

• Regulated entities (such as Māori energy companies and infrastructure investments), and

• Consumer advocates for Māori communities affected by unfair trade practices or predatory lending.

Although the Commission was still developing its cultural competence at this stage, it began informal engagement with Māori economic groups and recognised the need to understand tikanga and collective ownership structures when assessing competition or credit cases.

From around 2015 onward, the Commission began formally integrating Māori perspectives into its policy and operational work.

Key developments included:

Te Tiriti o Waitangi Frameworks

• The Commission adopted internal Treaty awareness and engagement frameworks aligned with wider public-sector obligations.

• Staff training on te ao Māori, tikanga, and Māori economic structures became more systematic.

Outreach to Māori Consumers

• The Commission launched targeted consumer education campaigns to help Māori communities understand their rights under the Fair Trading Act and Credit Contracts and Consumer Finance Act (CCCFA).

• Outreach was delivered through iwi networks, Māori media (including Radio Waatea and Te Karere), and in partnership with community providers such as Ngā Tāngata Microfinance and Māori Women’s Welfare League.

Financial Fairness and Vulnerable Consumers

• The Commission increasingly focused on predatory lending and door-to-door sales that disproportionately affected low-income Māori whānau.

• It took legal action against lenders and retailers who breached consumer credit laws in Māori communities.

The Commerce Commission was established in 1986 under the Commerce Act 1986, during a period of sweeping economic reform in New Zealand.
Before that, various smaller agencies dealt with competition, prices, and consumer protection in a more fragmented way.

In the early 1980s, New Zealand’s economy was transitioning from a tightly controlled, protectionist model toward a free-market system. Government deregulation meant greater competition, but it also created a need for strong, independent oversight to prevent monopolies and anti-competitive behaviour.

The Commerce Act 1986 created the Commerce Commission (Te Komihana Tauhokohoko) as an independent Crown entity to enforce the new rules of fair competition and to promote the long-term benefit of consumers.

When it was first established, the Commission’s responsibilities included:

• Enforcing competition law under the Commerce Act (preventing price-fixing, abuse of market power, and anti-competitive mergers).

• Regulating certain sectors where natural monopolies existed – like electricity lines, telecommunications, and gas pipelines.

• Overseeing fair trading under the Fair Trading Act 1986, which came into force soon after the Commerce Act.

• Later, enforcing consumer credit laws, under the Credit Contracts Act 1981 (replaced by the Credit Contracts and Consumer Finance Act 2003).

The Commission’s structure included a small group of appointed Commissioners, supported by an investigation and legal team. It operated independently of government, although it reported to the Minister of Commerce.

During the 1990s, New Zealand underwent major restructuring of its energy, telecommunications, and transport sectors. The Commission increasingly became the key regulator for newly privatised or deregulated industries.

Key developments included:

• Telecommunications Act 2001: introducing sector-specific oversight for phone and broadband networks, enforced by the Commission.

• Electricity Industry Reform Act 1998: separating generation and retail from lines companies and giving the Commission a regulatory role in price oversight.

• A focus on competition policy and merger clearance:  with the Commission regularly assessing high-profile mergers to ensure they didn’t reduce competition.

This was a period when the Commission’s profile grew sharply: it was seen as the “referee” for New Zealand’s newly competitive markets.

2000s: Consumer Protection and Credit Law

The early 2000s saw a shift toward consumer rights and protections, reflecting growing concern about fairness in credit, finance, and retail.

• The Fair Trading Act 1986 was strengthened, and the Commission was given stronger enforcement powers to combat misleading or deceptive conduct.

• The Credit Contracts and Consumer Finance Act 2003 (CCCFA) expanded the Commission’s jurisdiction to ensure that lenders treated borrowers fairly and transparently.

• The Commission gained powers to issue warning notices, compliance advice, and to take civil or criminal action against offending companies.

By the mid-2000s, the Commission was a dual-role regulator: protecting consumers and promoting competition – a rare combination internationally.

The 2010s saw the Commerce Commission take on some of its most visible and controversial cases.

Major moments included:

• Investigations into fuel pricing and supermarket competition.

• The 2018-2019 Market Study into the Retail Fuel Sector, which revealed limited competition and led to legislative changes.

• The 2021 Market Study into Supermarkets, which found that the grocery duopoly (Foodstuffs and Woolworths) was earning excessive profits – prompting a government response to boost competition.

• Ongoing oversight of telecommunications (broadband fibre rollout) and electricity pricing.

These years also saw the Commission adapt to digital markets – grappling with issues like data privacy, online advertising, and e-commerce misrepresentation.

In the 2020s, the Commerce Commission has taken on an even broader role; reflecting a recognition that fairness in markets isn’t just about economics, but about wellbeing and inclusion.

Key developments:

• Market Studies introduced under the Commerce Amendment Act 2018, allowing the Commission to investigate entire sectors (like supermarkets, fuel, and banking).

• Greater focus on financial hardship and vulnerable consumers, especially during and after the COVID-19 pandemic.

• Strengthening Māori engagement and recognition of Te Tiriti o Waitangi principles in its outreach and enforcement work.

• Increased resourcing and the appointment of Dr John Small as Chair in 2022, signalling a focus on accessibility, fairness, and transparency in regulation.

Today, the Commerce Commission operates across several key areas:

1. Competition: Preventing anti-competitive behaviour and mergers that lessen competition.

2. Consumer Protection: Enforcing the Fair Trading Act and CCCFA to ensure honesty and transparency.

3. Regulated Industries: Setting price and quality standards for electricity, gas, telecommunications, and airports.

4. Market Studies: Investigating the performance and fairness of major sectors.

5. Outreach: Engaging with Māori and Pasifika communities, small businesses, and rural consumers to make markets work for everyone.

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