New Zealand ComCom Considers HP New Zealand Resale Price Maintenance Plan

New Zealand’s Competitive Watchdog is a preliminary overview of key competitive issues that may occur if HP New Zealand is approved to engage in Resale Price Maintenance (RPM) in connection with the HP Online Store. Issued a statement of the problem.

Submitted by HP [PDF] On March 22, we will seek approval from the Commerce Commission (ComCom) to supply the product to third-party distributors. Third-party distributors sell their products directly to their customers and receive payment from those sales through HP’s online store. As part of this, HP will manage product and marketing strategies and price products for sale by third parties through the HP online store.

under 1986 Commercial CodeHowever, RPM is banned because it “prevents resellers from setting their own prices and can lead to higher consumer prices,” which ComCom considers to be a form of anti-competitive behavior. I will.

Participating in an RPM in New Zealand is only approved by the Watchdog when “I am convinced that the implementation of the RPM will or may bring such benefits to the general public in all situations”. Allowed.

In its submissions, if approved, some of the key benefits of the proposed arrangement are improved customer user experience for HP online stores, expanded payment options, faster delivery, and a wide range. A range of delivery options.

To make a statement [PDF], ComCom said it would identify and evaluate the potential disadvantages and benefits to determine whether to grant HP permission to engage in RPMs.

According to the statement, some specific considerations include those that are likely to occur in the future without the proposed actions and those that are likely to occur in the future with the proposed actions. Whether the act raises or lowers the price. Whether to reduce or improve quality, choice, or other factors of value to the consumer. Whether the action can improve or worsen the production process. And whether that action can support or interfere with product or process innovation.

‚ÄúConsider whether the proposed action can affect competition and bring benefits or disadvantages. For example, how that action affects competition among HP product resellers. We appreciate it and may affect the competition between HP products and rival brands. “

In addition, ComCom will allow HP to engage in RPM, such as whether HP can supply products to third-party distributors without controlling the retail price of the product in the HP store. He said he would consider what to do. Through alternative plans, HP can achieve “reasonably comparable results” to the proposed arrangements. Or can you implement a distribution model similar to what your company had in Acquire?

Until recently, HP sold products in HP-branded online stores through one of its resellers, Acquire, according to a statement, but as part of that arrangement, Acquire decided on the products and retail prices to sell. Was there.

ComCom will make a final decision on September 10, and stakeholders are currently required to submit comments on HP’s proposal until April 22.

HP New Zealand was recently sold for $ 1 from HP South Pacific, HPE’s Australian and New Zealand outposts. The sale eventually became HP South Pacific’s savior, with net income of just over A $ 13 million for fiscal year 2020, a significant improvement over A $ 2.79 million in net loss year-over-year.

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New Zealand ComCom Considers HP New Zealand Resale Price Maintenance Plan

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