ACCC won't appeal TPG-Vodafone merger

TPG and Vodafone are one step closer to merging, with the ACCC today confirming it won't appeal the Federal Court's ruling in favour of the union. The merger is still subject to approval from the Foreign Investment Review Board and a US Regulator, but ACCC's decision not to appeal means it should be completed by mid-2020.

Vodafone CEO Iñaki Berroeta welcomed the ACCC's decision.

"We are pleased that the ACCC has decided not to appeal the Court’s decision and that will allow us to quickly progress completion of the merger with TPG," said Berroeta. "We believe that the merger will allow us to be a stronger player that will bring more choice and value for Australian consumers and businesses."

The ACCC opposed the merger over concerns it would lessen competition in the mobile and broadband space, but concluded it did not have grounds for appeal.

"The ACCC remains disappointed by this outcome, which has closed the door on what we consider was a once in a generation chance for increased competition in the highly concentrated mobile telecommunications market," said ACCC Chairman Rod Sims.

The ACCC believed that if TPG didn't merge with Vodafone, it would build its own mobile network. TPG announced plans to build its own mobile network in 2017, but stopped work on it following the Federal Government's ban on the use of Huawei equipment in Australian 5G networks.

At the time, TPG said Huawei was chosen as the primary equipment supplier for its mobile network as it allowed a simple upgrade path to 5G. TPG's network was designed with this is mind, but the upgrade path was made unavailable, and as such, TPG decided to halt the project.

Alex Choros

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Alex Choros is the Managing Editor of WhistleOut Australia and an award-winning journalist. He's been writing about consumer technology for over a decade and is an expert on the Australian telco sector, to the point where he knows far too many phone and internet plans by heart. In addition to leading the WhistleOut editorial team, Alex is responsible for ruining the office Sonos with his troubled taste in music.

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