Cabcharge Australia Limited - proposed acquisition of Mobile Technologies International Pty Ltd


  • Cabcharge Australia Limited


  • Mobile Technologies International Pty Ltd

Market definition

The ACCC did not reach concluded views on market definition, but it considered the likely effects of the proposed acquisition on competition in the following potential markets:

- the supply of booking and dispatch systems to the taxi industry in Australia
- the supply of network services to taxi operators and drivers in relevant geographic areas (usually city-based)
- the supply of personalised transport services to the public in relevant geographic areas (usually city-based), and
- the supply of taxi payment processing services in Australia.

Competition analysis

The ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition in any of the potential markets.

There is no horizontal overlap between Cabcharge and MTI. Cabcharge owns and operates taxi networks and offers taxi payment processing services, while MTI supplies a taxi dispatch system. Most taxi networks, including Cabcharge, use the MTI dispatch system.

Foreclosure of rival taxi networks

The ACCC considered whether Cabcharge would have the ability and incentive to foreclose rival taxi networks by providing rival networks with inferior dispatch systems or services, and/or withholding new MTI features from rival networks. The ACCC notes that there are alternative suppliers of taxi dispatch systems in Australia. This means that switching alternative providers is feasible, and the real threat of networks switching is likely to competitively constrain Cabcharge.

Access to data of rival networks

The ACCC also considered whether Cabcharge would have the ability and incentive to access and use information about its competitors' businesses through the MTI dispatch system, in a way that would substantially lessen competition. The ACCC did not consider the information obtained through the dispatch system would give Cabcharge a significant competitive advantage or lead to a substantial lessening of competition. Additionally, Cabcharge's incentives to use the data to competitively harm rival taxi networks is likely to be constrained by the threat of networks switching to alternative dispatch system providers.

Foreclosure of rival taxi dispatch systems and payment systems

The ACCC considered the likelihood of Cabcharge bundling the supply of the MTI dispatch system with its payment terminal to foreclose rival taxi dispatch and/or payment systems. The ACCC did not consider it likely that Cabcharge would engage in anti-competitive bundling, as this would risk degrading its payment processing business. Additionally, drivers tend to have more than one payment terminal installed in their vehicles and can choose to use other payment systems for fares that do not need to be processed through the Cabcharge terminal.


30/07/2018ACCC commenced review under the Merger Process Guidelines.
10/08/2018Closing date for submissions from interested parties.
13/09/2018Former provisional decision date of 27 September 2018 delayed until 18 October 2018 to allow the ACCC time to consider additional information.
18/10/2018ACCC announced it would not oppose the proposed acquisition.