The Australian Competition and Consumer Commission will not intervene in the proposed acquisition of OzEmail by eisa, Acting ACCC Chairman, Mr Allan Asher, confirmed today.
"Following market inquiries with other Internet services providers and on the basis of other information, the ACCC has concluded that the proposed acquisition is unlikely to substantially lessen competition
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"The proposed acquisition would give eisa a market share of around 20 per cent in the provision of retail Internet access services. This would not significantly alter the existing market structure.
"Following the acquisition, there would be two large ISPs in terms of active subscriber numbers, Telstra and eisa/OzEmail, followed by a number of smaller competitors. Under these conditions, the competitive dynamics in this industry would be largely unaffected.
"This acquisition is likely to preserve the intense competition and rivalry that exists within this industry. The recent decision by Telstra to reduce Internet access charges across the board indicates that strong competitive pressures remain.
"There has been a worldwide trend towards falling retail Internet access prices for consumers, which has been exacerbated with the advent of free ISPs. This proposed acquisition is unlikely to stifle or arrest this trend".
