Merger reform to restrict growth of big tech power


Brandon How
Reporter

Big tech merger proposals that “entrench, materially increase, or materially extend a firm’s position to substantial market power” could soon be grounds for rejection, as the federal government releases options for merger control reform partly in response to the growing consolidation of digital platform operators.

Among several competition issues highlighted in a consultation paper released on Monday, the reforms seek to restrict the ability of digital platforms to extend their market power into related or adjacent markets, or acquiring nascent innovators that have the potential to grow into a significant competitor.

The government proposed several options to reform the regime for merger controls for public consultation, to ensure it is well equipped to prevent mergers that substantially reduce competition.

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