Source: Bell Gully

Algorithmic collusion and AI-enabled cartel risks under New Zealand’s Commerce Act are the focus of Bell Gully’s Big Picture report. The report emphasises that businesses remain responsible for outcomes produced by AI and algorithmic tools, and that New Zealand competition laws apply regardless of whether anti-competitive conduct stems from human decisions or automated systems. It characterises algorithmic collusion as situations where AI systems influence pricing or market behaviour in ways that reduce competition and can create cartel-like outcomes without direct human agreement. The text warns that AI pricing tools may enable faster, less visible monitoring and responses to competitors’ behaviour, thereby increasing competition law exposure. The Commerce Commission has signalled it is monitoring AI-related competition risks and is likely to apply existing law to algorithm-driven conduct. The report also reviews international enforcement developments, noting cases and actions in the US, UK, European Union, Mexico and Brazil as illustrative of the types of tools and behaviours most at risk of breaching competition law.

Practical mitigation advice in the report stresses the need for robust oversight and understanding of how AI tools operate, what data they rely on, and how AI-generated recommendations influence commercial decision-making. It recommends governance, compliance and risk-management measures to reduce exposure to enforcement, and positions firms that manage AI-related competition risks to better realise benefits while meeting evolving regulatory expectations. Bell Gully offers advisory services on competition law compliance, AI governance, regulatory investigations and AI risk management and invites readers to contact the listed competition contacts or their usual Bell Gully adviser. The publication includes a brief general disclaimer advising professional advice before taking action. Authors credited include Glenn Shewan, Torrin Crowther, Penny Pasley, Emma Quigley, Elise Bond and Sean Gibbs, and the page lists Bell Gully’s Auckland and Wellington office contact details.