'We risk stifling innovation': Startups, Tech Council cool on Labor's merger changes
Startup founders and the lobby group representing the tech sector have expressed caution on changes to merger laws that could make it harder for entrepreneurs to exit.
Startup founders and the lobby group for Australia's technology sector have welcomed steps by the government to promote competition in the economy but warn Labor's changes to merger rules could stifle innovation by making it harder for entrepreneurs to exit.
Treasurer Jim Chalmers on Wednesday announced a series of sweeping reforms to Australia's merger system, including mandatory notification to the competition regulator for deals above yet-to-be-determined thresholds. Under the changes, in deals above the threshold the merger activity of both sides of the transaction for three years prior would be subject to review, in a move the ACCC admits will lead to longer reviews even where there are no competition concerns.
Ben Thompson, CEO of Employment Hero, which announced earlier this week that it had acquired Employment Innovations, highlighted the importance of acquisitions for the company, saying it meant it could accelerate its own innovation.
“Having to jump through regulatory hoops would have slowed this deal down,” Thompson told Capital Brief. “It would be a shame if the ability to move quickly and deliver innovation to those that would benefit was hampered.”
