The ACCC will not oppose Woolworths’ (ASX: WOW) proposed acquisition of online retailer MyDeal (ASX: MYD).
Woolworths, through its Big W stores and supermarkets, and MyDeal, through its online marketplace, sell a variety of general merchandise products to consumers including furniture, health and beauty products, homewares and electronics.
In addition to retailing their own products, Woolworths and MyDeal also operate online marketplaces which are used by third-party sellers to retail products online. MyDeal operates the MyDeal platform, and Woolworths operates Everyday Market from Woolworths.
The ACCC’s review examined online retail competition and competition between third-party marketplace platforms.
“Following our review and feedback from market participants, we do not consider that Everyday Market from Woolworths is a significant competitor to MyDeal or other online marketplaces and consequently, this acquisition is unlikely to substantially lessen competition,” ACCC Commissioner Liza Carver said.
The ACCC also found it was unlikely that Woolworths’ retail position could be leveraged into MyDeal’s online sales marketplace in an anti-competitive way.
“Woolworths would continue to face significant competition from online marketplace platforms available to third-party sellers,” Ms Carver said.
Further information is on the ACCC’s public register at Woolworths Group Limited proposed acquisition of MyDeal.com.au Limited.
The ACCC commenced a review of the proposed acquisition on 14 June 2022.
Woolworths operates a large network of supermarkets and approximately 176 bricks and mortar ‘Big W’ stores throughout Australia. Woolworths also operates Big W online, which sells Big W products, and Everyday Market from Woolworths.
MyDeal is a publicly listed Australian online retailer and marketplace which was founded in 2012.
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