Feeds

ACCC kills Telstra's transcation cheer

Opposes Trading Post, Carsales tie-up, delays Adam Internet swoop

Next gen security for virtualised datacentres

Telstra has been given a double dose of pre-Christmas disappointment by the Australian Competition and Consumer Commission which has thwarted the proposed acquisition by Carsales.com of Trading Post assets from Telstra in addition to delaying Telstra’s acquisition of Adam Internet.

On both counts the regulator has raised concerns that transactions would substantially threaten competition in their respective markets.

The ACCC claims that Telstra’s swoop on Adam Internet would stifle competition in the supply of retail fixed voice and broadband services and has sought further industry consultation.

Meanwhile the regulator has flagged that the Carsales and Trading Post transaction would be detrimental to competition in the automotive classifieds sectors as it would remove one of Carsales’ effective competitors.

Under the original deal in August, carsales.com was set to take over the operations of Telstra’s TradingPost website under classified business unit - quicksales.com.au.

At the time, Telstra Media executive director JB Rousselot described the deal as a key growth opportunity for the TradingPost website. ACCC Chairman Rod Sims views the deals of more of a monopolistic market shift.

“Trading Post is a well established and high profile brand for automotive classifieds advertising and provides an important competitive constraint on Carsales. The proposed acquisition would significantly increase Carsales’ market power and competition would be substantially reduced to the detriment of automotive dealerships and private advertisers,” Sims said.

In opposing the acquisition Sims said concluded that the proposed acquisition would increase the already high barriers to entry for the supply of online automotive classified advertising and give Carsales.com dominant market power.

“The proposed acquisition would further lessen the ability of competing sites to impose a competitive constraint on Carsales, including by reducing their ability to attract inventory and audience,” Sims added.

Carsales.com's chief executive Greg Roebuck said the company was disappointed by the decision, but has yet t reveal if it will work through other transaction options with Telstra. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Kaspersky backpedals on 'done nothing wrong, nothing to fear' blather
Founder (and internet passport fan) now says privacy is precious
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Mozilla's 'Tiles' ads debut in new Firefox nightlies
You can try turning them off and on again
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?