ACCC gives up on TPG-Vodafone merger battle

ACCC said it has concluded that it does not have grounds for appeal

Credit: ACCC

Australia’s competition watchdog has decided against appealing the decision by the Federal Court to allow telcos TPG Telecom and Vodafone Hutchison Australia (VHA) to go ahead with their proposed merger. 

In February, the Federal Court voted in favour of the proposed $15 billion merger between the telcos, overruling opposition from the Australian Competition and Consumer Commission (ACCC).

The telcos took the case to court last May following the ACCC's opposition of the merger on the grounds that it would hurt competition in the mobile network market.

The ACCC argued a merger would prevent TPG from resurrecting its plan to roll out Australia’s fourth mobile network, thereby becoming an “aggressive competitor” in the sector.

Now, in its own words, the ACCC is declining to appeal the Court’s decision that the proposed merger “would not substantially lessen competition”. 

The ACCC said it has concluded that it does not have grounds for appeal, which would require the ACCC to establish an error of law by the judge.

“The ACCC remains disappointed by this outcome, which has closed the door on what we consider was a once in a generation chance for increased competition in the highly concentrated mobile telecommunications market,” ACCC chair Rod Sims said.

“The future state of competition without a merger is uncertain. But we know that competition is lost when incumbents acquire innovative new competitors.”

“Despite this outcome, we will continue to oppose mergers that we believe will substantially lessen competition, because it’s our job to protect competition to the benefit of Australian consumers,” he added. 

The decision comes as TPG reveals in its latest half-yearly financial report that its VHA merger plans resulted in a hit of $6 million in one-off transaction costs in the six months ending 31 January. 

The telco reported a year-on-year drop in earnings before interest, tax, depreciation, amortisation and impairment for the half year, to $406.6 million. 

However, the company’s revenue was up by 0.9 per cent, year-on-year, to nearly $1.25 billion for the period.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags acccvhaTPG

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Leon Spencer
Show Comments

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers


This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang


It really doesn’t get more “gaming laptop” than this.

Jack Jeffries


As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr


The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?