HP NZ's application to engage in resale price maintenance

Commerce Commission issues determination on HP New Zealand’s application to engage in resale price maintenance

The Commerce Commission has authorised HP New Zealand Limited (HP) to engage in resale price maintenance (RPM) in relation to its proposed HP online stores and HP online marketplace stores for a period of five years.

On 22 March 2021, HP applied for authorisation to engage in RPM in relation to its HP stores. The conduct for which HP requested authorisation involves HP specifying the prices for which a third-party distributor will sell HP products to consumers on the HP Stores.

“After consulting on its draft determination, the Commission considers that the HP stores are likely to provide many of the customer-experience benefits claimed by HP, while the RPM for which HP seeks authorisation is unlikely to cause any detriments. Further, the RPM will only apply to products sold through the HP stores,” said Chair Anna Rawlings.

Therefore, the Commission has reached the view that authorising RPM in this case is likely to lead to a net public benefit and that it would be appropriate to grant authorisation for five years. The Commission’s view is based on its assessment of the likely benefits and detriments in this case.

The determination is available on the Commission’s case register.

Background
HP is a member of the HP group. Its US listed parent company, HP Inc, is a manufacturer of HP-branded technology products including desktop computers, notebooks, printers and related accessories.

Authorisation requirements
The Commission may grant authorisation under the Commerce Act for certain arrangements that may otherwise breach the Commerce Act, if it is satisfied that the public benefits of the arrangements outweigh the detriments arising from the loss of competition. The granting of an authorisation protects the applicant from court action under the Commerce Act by the Commission and private individuals.

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