Subscribe to CIO Magazine »

ACCC seeks comment on competition issues with Telstra's Adam acquisition

The ACCC is seeking further information on potential competition issues due to the merger.

The Australian Competition and Consumer Commission (ACCC) has released a statement of issues paper seeking industry comment on Telstra’s proposed acquisition of Adam Internet.

The ACCC is seeking further information on potential competition issues due to the merger.

“The ACCC’s preliminary view is that the proposed acquisition is likely to result in a substantial lessening of competition in the supply of retail fixed voice and broadband services,” Rod Sims, ACCC chairman, said in a statement.

“This is because Telstra would have the ability and incentive to use its market power in wholesale markets to favour the Adam Internet business over its other wholesale customers which is likely to foreclose competition in the relevant downstream retail markets.”

Adam Internet is the last independent ISP in South Australia, with Sims concerned around the acquisition reducing competition in the South Australian market, which could impact on services in the state.

Yesterday Vodafone Hutchinson Australia, iiNet and Macquarie Telecom released a joint statement stating they opposed the deal.

“We believe that if the ACCC cannot identify that this acquisition would result in a substantial lessening of competition it is evidence that there is a flaw in the law,” the companies said in the statement.

Submissions for comment close 24 January, 2013.

The ACCC has deferred its decision about whether to give the acquisition the go-ahead to 7 February, 2013.

Follow Stephanie McDonald on Twitter: @stephmcdonald0

Follow Computerworld Australia on Twitter: @ComputerworldAU

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

References show all
Comments are now closed.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Australian Competition and Consumer Commission (ACCC), Adam Internet, Telstra
Latest Blog Posts
  • VDI Solutions Guide
    The IT industry has been abuzz promoting the idea of virtual desktop infrastructure. But despite its advantages, adoption has been slow, and many organizations have abandoned their VDI initiatives. This paper explores how a new flash-based approach can overcome the key VDI pitfalls, and deliver a solution that both end-users and IT administrators will love.
    Learn more »
  • ERP Selection: Finding the Right Fit
    Finding a needle in a hay stack is hard, but the task pales in comparison to finding a specific needle in a pile of needles. Selecting the ideal Enterprise Resource Planning (ERP) solution can feel just as daunting. ERP represents a serious investment for any organisation and is vital to future success. This report explores the strategies organisations are employing to find the right ERP fit that will give them the tools they need to thrive.
    Learn more »
  • The CIO Paradox
    As there are timeless leadership principles underlying IT value, there are unfortunately also timeless challenges that thwart the IT organisations efforts and make for a rocky path to CIO success. These are the inherent contradictions we call the CIO Paradox.
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Salary Calculator

Supplied by

View the full Peoplebank ICT Salary & Employment Index