Auckland Airport has dropped plans to cut the number of duty free retailers from two to one.
The airport said today it had decided to retain two such operators rather than face the prospect of an extended dispute with the Commerce Commission, which had been investigating the proposal.
The airport had provided a formal undertaking to retain two retailers until June 2015.
In response, the commission had notified the airport that, although it considered the airport's conduct risked breaching the Commerce Act, the commission would cease its investigation.
"Although we firmly believe that Auckland Airport has not breached the provisions of the Commerce Act, this is a pragmatic and practical decision," airport chief executive Don Huse said.
The decision would remove the uncertainty which had been created by the investigation process around international terminal building development projects currently being planned or in progress.
A number of options were being considered for maintaining two duty free operators on both arrivals and departures, the airport said.
It was not yet possible to determine the costs or the impact on the company's retail income, if any, associated with the change.
Commission chair Paula Rebstock said the commission had been concerned that had the move from two to one retailers gone ahead consumers would have paid higher prices for duty free products.
