ACCC flags concerns with REA’s proposed Dynamic Methods acquisition
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The News: The Australian Competition and Consumer Commission (ACCC) has raised competition concerns over REA's proposed acquisition of Dynamic Methods and will field submissions on the merger.
The context: The competition watchdog launched its inquiry into REA Group’s proposed acquisition of Dynamic methods in late November last year. REA, which owns market-leading real estate classifieds business realestate.com.au, has targeted the market’s leading digital real estate forms business in all Australian markets bar Victoria.
The ACCC outlined concerns in a statement of issues released Thursday related to the expansion of REA Group’s existing ecosystem of real estate products to the point it would “significantly harm competitors”.
What they said: “Industry participants such as real estate service providers have expressed serious concerns to us about how the proposed acquisition will entrench REA Group’s already strong position and give it the ability and incentive to significantly harm competitors,” ACCC commissioner Liza Carver said in a statement Thursday.
“Many are concerned that REA Group, which operates realestate.com.au, will have the ability to control access to, and data from, digital forms which are necessary for providing real estate related services.”
The source: ACCC media release
