Federal Court decision on proposed TPG-Vodafone merger

Minister for Communications, Cyber Safety and the Arts, Paul Fletcher, said:

“I note the Federal Court's decision that the proposed merger of Vodafone Hutchison Australia and TPG Telecom would not be likely to substantially lessen competition.

“This follows the two companies proposing to merge; the ACCC opposing that merger on the grounds that it would substantially lessen competition; and the Federal Court finding that the merger would not be likely to substantially lessen competition.

It is absolutely appropriate that the competition implications of the proposed merger have been very carefully examined by the ACCC and the Federal Court, as the central policy question is how to maximise competition in the mobile market.

“Today's outcome clears the way for a stronger third player in the mobile market - which in my view is likely to bring greater competition in the market, in turn delivering benefits to consumers.

“I have never thought the prospect of a fourth entrant establishing a sustainable business was very great, given the history of the Australian mobile market, with One.Tel in the late nineties and Hutchison some years later both failing to sustain themselves as fourth entrants in the market.

“The proposed merger remains subject to regulatory and shareholder approvals.”


Media contact:
Brad Hatch | 0448 162 679 | Brad.Hatch@communications.gov.au
Rebecca Papillo | 0439 892 771 | Rebecca.Papillo@communications.gov.au