The Government wants to give the Commerce Commission new information-gathering powers to prevent land wars between supermarkets restricting competition.
Parliament's Economic Development, Science and Innovation committee has recommended giving the Commission these powers by adding clauses to the Commerce (Grocery Sector Covenants) Amendment Bill, which is due to have its second reading in Parliament this week.
Commerce and Consumer Affairs Minister David Clark supports updating the Bill, which is aimed at preventing supermarkets from buying up land or dictating the terms of leases to block their competitors from getting a foothold in a neighbourhood.
The new proposal is to enable the Commerce Commission to require a grocery retailer to give it information about contracts, arrangements, understandings, or covenants that make it difficult for competing retailers to set up shop.
The aim of these powers is to help the Commerce Commission enforce the new rules.