The ACCC has outlined its preliminary competition concerns with Orikan Group Pty Ltd’s proposed acquisition of Duncan Technologies Pty Ltd in a Statement of Issues published today.
Orikan and Duncan are two of the largest suppliers of on-street parking solutions in Australia.
“We are concerned that the proposed acquisition would substantially lessen competition in the market for end to end on-street parking solutions as Duncan is the primary competitor to Orikan,” ACCC Commissioner Dr Philip Williams said.
The ACCC is also concerned that the proposed acquisition may enable Orikan to prevent rival providers of standalone parking services, such as on-street parking meters and enforcement and infringement systems, from competing effectively for local council contracts.
“We are concerned that following the acquisition, Orikan would have the ability and incentive to prevent or limit the integration of third-party products with their own central parking management systems,” Dr Williams said.
“We consider that the proposed acquisition is likely to lead to less competitive tender responses to local councils seeking on-street parking solutions and reduce innovation.”
The ACCC has not reached a concluded view on any of the issues outlined.
The ACCC invites submissions in response to the Statement of Issues by 19 December 2024. Parties can contact the ACCC via mergers@accc.gov.au.
More information, including the Statement of Issues is available on the ACCC’s public register here: Orikan Group Pty Ltd – Duncan Technologies Pty Ltd.
Background
On-street parking solutions refer to a range of products and services, including parking meters, enforcement software, sensors, parking apps and central management systems. The main customers of on-street parking solutions in Australia are local councils.
Orikan supplies a suite of on-street parking solutions primarily to local councils in Australia.
Duncan supplies and maintains parking meters, enforcement software and infringement solutions. As part of its end to end on-street offering, Duncan resells payment apps, sensors and automated number plate recognition from third-party suppliers.
Other providers of on-street parking solutions in Australia include Flowbird, Arthur D. Riley and Smarter City Solutions.