Policy direction power governs commission action, requires prior consultation and gives finality on policy classification. A government authority may issue written policy directions that bind the competition regulator in exercising its powers and performing functions, excluding technical and administrative matters. The regulator should, as far as practicable, be given an opportunity to express views before such directions are issued. The authority's decision that a question is one of policy is final, establishing conclusive policy classification and binding effect on the regulator's policy judgments.