MyCC has wide powers to investigate suspected breaches of the Competition Act 2010 — including the power to demand information and to search premises under warrant. Understanding the process, and being ready to respond properly, can make a real difference to the outcome, because mistakes early on (such as destroying documents) are themselves offences.

This article walks through how an investigation starts, MyCC’s powers during it, the decision process that follows, and a practical plan for what to do if MyCC arrives at your door.

Key takeaways •Two triggers. A complaint (section 15) or MyCC’s own initiative (section 14). •Strong powers. Demands for information (section 18) and search and seizure under warrant (section 25). •Obstruction is an offence. Destroying or concealing records (section 24) or misleading MyCC carries criminal liability. •A structured decision path. Proposed decision (section 36), representations and hearing (sections 37–38), then a finding (section 39 or 40). •Have a plan. Dawn raids are unannounced — brief staff and engage competition counsel immediately.

How does an investigation begin?

MyCC can open an investigation in two ways. Any person — a customer, competitor or whistleblower — can lodge a complaint under section 15. MyCC can also act on its own initiative under section 14 where it has reason to suspect an infringement, including off the back of a leniency application, market screening or press reports. Once opened, an investigation may run for some time before any decision, and MyCC must publish a statement if it later closes the investigation.

What powers does MyCC have during an investigation?

Part III of the Act equips MyCC with significant tools:

• Requiring information. MyCC can compel an enterprise to provide specified information and documents (section 18). Non-compliance, or providing false or misleading information, is an offence.
• Search and seizure. MyCC can enter and search premises and seize material under a warrant (section 25), with related powers of entry — the basis for a “dawn raid”.
• Protecting the evidence. Destroying, concealing, mutilating or altering records relevant to an investigation (section 24) is a serious offence.
• Confidentiality and privilege. Information provided is subject to confidentiality protections (section 21), and legally privileged communications are protected (section 22).

What is a dawn raid?

A “dawn raid” is an unannounced inspection in which MyCC officers arrive at business premises, usually with a warrant, to search for and seize evidence before it can be removed or destroyed. Because there is no advance warning, the time to prepare is now, not on the day. Staff at reception and across the business should know who to call and how to behave if officers arrive.

What to do if MyCC arrives at your premises

A clear, practised plan protects the business and avoids inadvertent offences:

• Stay calm and cooperate with the lawful scope. Do not obstruct the officers; check the warrant and note its scope.
• Call competition counsel immediately. Ask whether officers will wait for your lawyer to arrive, and keep a record of what is taken.
• Do not destroy or hide anything. Deleting emails or removing documents during an investigation is a criminal offence (section 24).
• Protect privilege and confidentiality. Identify legally privileged material (section 22) and confidential information (section 21) clearly rather than handing it over indiscriminately.
• Brief your team. Tell staff to be truthful and factual and not to volunteer speculation; designate who speaks to the officers.
• Consider leniency. If a cartel may be involved, take urgent advice on the leniency regime (section 41) and its first-mover advantage.

What happens after the investigation?

If MyCC concludes there may be an infringement, it issues a proposed decision (section 36) setting out its case. The enterprise can make written and oral representations and is entitled to a hearing (sections 37 and 38) before any final decision. MyCC then makes a finding of non-infringement (section 39) or infringement (section 40). In urgent cases it can impose interim measures (section 35) at an earlier stage, and it may accept binding undertakings (section 43) to resolve concerns without a full finding.

What can you do about the outcome?

A finding of infringement under section 40 can carry a penalty of up to 10% of worldwide turnover plus directions. If you disagree, the route of challenge is an appeal to the Competition Appeal Tribunal (section 51), with a possible stay of the decision pending appeal (section 53). See financial penalties and sanctions for competition breaches and appealing a MyCC decision: the Competition Appeal Tribunal.

Frequently asked questions

How does a MyCC investigation start?

An investigation can begin on a complaint from any person under section 15, or on MyCC’s own initiative under section 14, where it has reason to suspect a breach of the Competition Act 2010.

Can MyCC search my premises without notice?

Yes. MyCC can enter and search premises and seize material under a warrant (section 25), and has related powers to require information. A “dawn raid” is unannounced, so businesses should have a response plan in place in advance.

Is it an offence to obstruct MyCC or destroy documents?

Yes. Obstructing MyCC, failing to comply with a lawful requirement, providing false or misleading information, and destroying, concealing or altering relevant records (section 24) are offences that can attract criminal liability.

What happens after the investigation?

If MyCC believes there is a breach, it issues a proposed decision (section 36). The enterprise can make written and oral representations and is heard (sections 37–38). MyCC then makes a finding of non-infringement (section 39) or infringement (section 40).

Are my communications with lawyers protected?

Legally privileged communications are protected under section 22, and information provided to MyCC is subject to confidentiality protections under section 21. You should identify privileged material clearly during any investigation.

Speak to NZSK’s competition law team If you have received a notice from MyCC, are reviewing an agreement or a contemplated deal, or want to put a compliance programme in place, our competition law team can help. Ng, Zainurul, Seke & Khoo (NZSK) Offices: Mont Kiara and Puchong Phone / WhatsApp: 016-557 4789 Email: [email protected] Web: nzsklegal.com