Business guidance for collaborating in an emergency

The Commerce Commission has issued new guidance to help businesses (including vehicle dealers) understand how and when they can collaborate in response to an emergency – such as working together in regions impacted by Cyclone Gabrielle.

“It’s been devastating to see what’s happened in Northland, Auckland, Tairāwhiti Gisborne and Hawke’s Bay with the extreme weather events this year, and in these emergency situations businesses may need to collaborate in response to the emergency,” says Commerce Commission chair John Small.

BYD Bayswater provided its EV stock for vehicle-to-load (V2) purposes to help during power cuts in Hastings, for instance.

In releasing the Business collaboration in response to an emergency guidance, Small says the commission wants to ensure businesses have simple and clear information about how they can work together to maintain the supply of goods and services during an emergency situation.

He says competition benefits consumers even in times of crisis. However, the commission is equally conscious of concerns that uncertainty over competition law enforcement could impede necessary co-operation in an emergency situation.

The guidance sets out the factors that the commission will take into account when considering approaches from businesses who want to collaborate in response to an emergency.

“It is important that New Zealanders continue to have confidence in markets and that consumers continue to experience the benefits of competition,” Small says.

“Competition encourages businesses to offer lower prices, better services and higher quality goods, as well as incentivising businesses to innovate and improve efficiency.”

“Therefore, this guidance will apply only in response to a genuine emergency: where a State of Emergency is in effect, or where the commission otherwise advises that the situation warrants it.

“The commission will not tolerate collaborations that have the purpose of profiteering or otherwise taking advantage of an emergency for commercial gain.”

Small says the guidance emphasises the need for business to think carefully about the duration and nature of any collaboration and encouraged businesses to reach out to the commission early if they think they will need to collaborate in the event of an emergency.

The commission will also be reaching out to procurers in the public and private sectors to talk with them about competition issues, including cartel conduct and how to spot it.