The Commerce Commission has received an application from HP New Zealand (HP) seeking authorisation to engage in resale price maintenance (RPM) in relation to its proposed arrangements for its HP online store and prospective HP online marketplace stores.
HP's parent company, HP Inc., is a manufacturer of HP-branded technology products including desktop computers, notebooks, printers and related accessories and supplies. HP imports, distributes and supplies HP products in New Zealand through its network of distributors, retail channel partners and resellers for resupply to consumers and business customers. HP does not currently sell directly to consumers in New Zealand.
HP's proposed arrangements involve HP supplying HP products to a third-party distributor, which will on-sell direct to customers and receive payments from customers through HP's new e-commerce platform. The third-party distributor will also be responsible for the physical supply of HP products to customers purchasing from the HP online store, or future HP online marketplace stores.
The conduct for which HP seeks authorisation involves HP controlling product and marketing strategies and, in particular, specifying the prices for which the third party will sell the HP products to consumers. This will only apply to products sold through the HP online store or future HP online marketplace stores.
A public version of the authorisation application will be available shortly on the Commission's case register.
Background
The Commission can authorise RPM if it is satisfied that the RPM conduct will in all the circumstances result, or be likely to result, in such a benefit to the public that the conduct should be permitted.
