Legislation that bans major supermarkets from blocking their competitors from accessing land to set up new stores has passed its final hurdle in Parliament.
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The new law bans restrictive covenants on land and exclusive covenants on leases - as well as making existing covenants unenforceable.
It's the first in a suit of measures targeting the supermarket duopoly after the Commerce Commission found competition in the retail grocery sector was not working.
Minister of Commerce and Consumer Affairs David Clark says it will put an end to anti-competitive land wars silently hampering the grocery sector.
"This law will stop the major supermarkets from dictating the terms of leases to block opposition retailers from getting a foothold in an area.
"This is great news for the would-be competitors of the established supermarkets - especially those who've found it difficult in the past to find suitable sites to set up new stores."
The Commerce (Grocery Sector Covenants) Amendment Bill passed its third reading with unanimous support from the House this evening.