Australian Competition and Consumer Commission (ACCC) expressed concerns the proposed merger between TPG Telecom Ltd. and Vodafone Hutchison Australia Pty Ltd. would "result in a substantial lessening of competition."
"Our preliminary view is that TPG is currently on track to become the fourth mobile network operator in Australia, and as such it’s likely to be an aggressive competitor," Rod Sims, ACCC chairman said, concluding that "a mobile market with three major players rather than four is likely to lead to higher prices and less innovative plans for mobile customers."
If approved, the merger of the two companies will create an enterprise valued at $15 billion, with a revenue of over $6 billion.
