https://www.accc.gov.au
The Federal Court has declared a proposed merger between
The ACCC opposed the merger last year because it considered that, in the absence of the merger, TPG was likely to continue to roll out its own mobile network and become an innovative and disruptive competitor in
TPG had already spent
The ACCC also believes TPG has the ability and incentive to overcome technical and commercial challenges.
"Australian consumers have lost a once-in-a-generation opportunity for stronger competition and cheaper mobile telecommunications services with this merger now allowed to proceed," ACCC Chair
"Mobile telecommunication services are integral to
"The ACCC's concern was that with this merger, mobile data prices will be higher than they would be otherwise. These concerns were reinforced by statements from the industry welcoming the merger and the consequent "rational" pricing."
The ACCC is successful in more than 80 per cent of the consumer and competition law cases it brings. It opposes mergers in a range of markets every year, with very few such decisions challenged in court.
"We will continue to oppose mergers that we believe will substantially lessen competition, because it's our job to protect competition and, in doing so, ensure that Australian consumers enjoy the benefits of competition,"
"We stand by our decision to oppose this merger. If the ACCC won 100% of the cases we took it would be a sign we weren't doing our job properly; by only picking 'safe' cases and not standing up for what we believe in."
"The future without a merger is uncertain. But we know that competition is lost when main incumbents acquire innovative new competitors."
The ACCC is carefully considering the judgment.
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(C) 2020 M2 COMMUNICATIONS, source