Australian telco Telstra’s proposed acquisition of ISP Adam Internet is facing concerns from the antitrust regulator, which says it will significantly lessen competition in South Australia.
TelecomFinance reported in October that Telstra had agreed to…
Australian telco Telstra’s proposed acquisition of ISP Adam Internet is facing concerns from the antitrust regulator, which says it will significantly lessen competition in South Australia.
TelecomFinance reported in October that Telstra had agreed to acquire Adam Internet in a deal rumoured to have cost the telco AUS$55m (US$57.1m).
“The Australian Competition and Consumer Commission (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,” ACCC chairman Rod Sims said in a statement from the regulator today.
“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.”
Sims added that the proposed acquisition may “reduce the levels of competitive tension” for the supply of retail fixed broadband services in South Australia.
The ACCC is inviting responses from the market by 24 January and will make a final decision on 7 February.
This is not the only takeover bid from Telstra provoking opposition from the antitrust watchdog. As TelecomFinance reported last month, the telco was considering a bid for Leighton Holdings’ telecoms assets, and Rod Sims had expressed his concerns in a local paper.
