Australia’s consumer watchdog is calling for comment on the potential impact on competition if TPG’s acquisition of iiNet goes ahead.
TPG announced its $1.4 billion takeover bid last month. The acquisition would boost TPG’s broadband customer base to more than 1.7 million, and create a telco bigger than the current No, 2, Optus.
In a request for submissions, the Australian Competition and Consumer Commission said it is investigating “how the merger will affect competition for the supply of these telecommunications services, having regard to the areas of overlap between the merger parties and the extent of competitive constraints.”
Issues that interest the ACCC include the “the closeness of competition between TPG and iiNet – how similar or different are their services”; the impact of the merger on prices and non-price aspects of competition; and whether “Telstra, Optus, M2 and other providers” would constrain TPG from raising prices or reducing service levels.