UPDATE: ACCC postpones Telstra, OzEmail decision

The Australian Competition and Consumer Commission (ACCC) says it will take several more weeks before a final decision on the proposed merger between Telstra and OzEmail is made.

In a preliminary statement, the consumer watchdog said it has "significant concerns that the acquisition will lessen competition".

In the short time the Commission has had to consider the acquisition, it cannot yet agree to the merger, Professor Allan Fels, ACCC's chairman, said.

"It is possible that the proposed acquisition could have a detrimental impact on the competitive dynamics for Australian online content, online advertising and electronic commerce," Fels said.

"The Internet markets are still in the early stages of development in this country. The emergence of a dominant Australian ISP could retard competition and stifle innovation in these evolving markets."

According to mergers commissioner Ross Jones, the ACCC had been working towards a January 28 deadline following a request from Telstra for a preliminary notice. Yet the telco itself only issued its written submission to the Commission yesterday afternoon.

"I was most hesitant to release a preliminary notice before a submission from [Telstra was received]", Jones said. "I am most puzzled by the fact it came in late yesterday."

According to Jones, three teams from the ACCC will continue to examine the acquisition over the next few weeks. It is expected further meetings will be held with Telstra and other interested parties as more information comes to light.

Jones was unable to comment on what was contained in Telstra's submission, but speculated that it would focus on "trying to convince [the ACCC] that there was not a problem".

Jones said the ACCC has not received a submission from OzEmail, but has had several meetings with the ISP. "It's no surprise when the partner being acquired doesn't make a submission. I would think there may be other bidders around," he said.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Luisa Bustos

PC World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?