ACCC decided not to approve the Telstra Corporation and TPG Telecom deal

Today ACCC announced that it has decided not to approve planned regional mobile network arrangements between Telstra Corporation Limited (ASX: TLS) and TPG Telecom Limited (ASX: TPG). According to the statutory test, the ACCC must not permit unless satisfied that the planned arrangements would not be likely to significantly lower competition or that the possible public benefits from the deals would outweigh the likely public detriments.

After a broad public discussion and investigation, the ACCC is not satisfied with either of these tests and, therefore, cannot give permission.

“We examined the proposed arrangements in considerable detail. While there are some benefits, it is our view that the proposed arrangements will likely lead to less competition in the longer term and leave Australian mobile users worse off over time, in terms of price and regional coverage,” ACCC Commissioner Liza Carver said. 

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