Acquirer(s)

  • Amazon.com Incorporated

Target(s)

  • The Book Depository International Limited

Summary

Amazon.com Incorporated proposed to acquire The Book Depository International Limited.

Market definition

The ACCC considered the proposed acquisition in the context of the retail supply of books. For the purposes of considering this acquisition, the ACCC did not consider it necessary to form a definitive view on whether there were separate product markets based on the sales channel (online or bricks and mortar retailers), book format (printed or electronic) or category of title (front-list or back-list).

Competition analysis

The ACCC formed the view that the proposed acquisition was unlikely to substantially lessen competition in any relevant market. Factors informing this conclusion included:

-The merged firm would continue to face competition from several book retailers (including Australian and overseas-based online retailers);

-Barriers to entry into the online retail supply of books were relatively low with the availability of third party sales platforms such as Amazon Marketplace and the use of drop shipping allowing new entrants to enter the market with no significant infrastructure or technical requirements;

-Barriers to expansion were also low with the existence of several international competitors that could easily increase their presence in the Australian market.

Timeline

Date Event

ACCC commenced review under the Merger Review Process Guidelines.

Closing date for submissions from interested parties.

ACCC requested further information from Amazon.com. ACCC timeline suspended. Former proposed decision date for announcement of ACCC's findings of 29 September 2011 delayed.

Parties provided the ACCC with further information. ACCC timeline recommenced.

ACCC announced it would not oppose the proposed acquisition.