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HP gains final clearance for resale price maintenance

HP New Zealand has been cleared to engage in resale price maintenance (RPM), the Commerce Commission has determined. 

The commission said it was satisfied after investigating the proposal by HP to specify prices on an online store in New Zealand that would be run by a third-party distributor selling HP products to consumers was not against the public interest. The decision will last five years whereafter HP will have to reapply. 

“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,” said chair Anna Rawlings. 

“Further, the RPM will only apply to products sold through the HP stores.” 

The commission believes that authorising RPM, in this case, is likely to lead to a net public benefit and that it would be appropriate to grant authorisation.

In a preliminary decision released for comment last month, the commission indicated it saw no reason to block the move, but invited further submissions. 

HP, which does not currently sell direct to consumers in New Zealand, plans to launch an e-commerce platform here later this year. 

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