Tuesday, June 2, 2009

Competition not substantially lessened by mobile merger

Some coverage here:


ACCC press release here:


While this assessment of competition in a market was in a context of a
merger, the general approach adopted by the ACCC in looking at
competition in a market applies well in other competition law scenarios.

Two key factors in this case seem to have been;

that 'ongoing investments are needed to meet the increased customer
demand for bandwidth-hungry data services, including mobile broadband.
In this respect, the ACCC considers that mobile voice and data
services will continue to converge in the future'
'whether increased concentration in the mobile sector would result in
reduced pricing pressure for retail mobile telecommunications
services. It considered evidence which suggested that, individually,
without this merger, the parties would not sustain vigorous price
competition in the longer term'.

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