The proposed US$11 billion merger between wagering giant Tabcorp and lotteries and wagering firm Tatts Group is set for more scrutiny, this time by the Federal Court.
The the Australian Competition and Consumer Commission (ACCC) has applied to the Federal Court for a judicial review of the Australian Competition Tribunal’s consent for Tabcorp to merge with Tatts.
The ACCC argues that the tribunal made three errors of law in its decision which, the competition watchdog says, are fundamental to the case and to all future merger assessments.
Tabcorp initially sought informal merger clearance from the ACCC, and the ACCC started a review in November 2016.
But shortly after the watchdog published a statement of issues in March 2017, Tabcorp withdrew the application and instead lodged an application for authorisation with the Australian Competition Tribunal.
The ACCC and Australian Competition Tribunal apply different tests when assessing a merger. The ACCC considers whether there would be a substantial lessening of competition, whereas the tribunal can authorise a merger if the public benefits outweigh the public detriments.
The tribunal granted authorisation for the Tatts-Tabcorp merger last month, saying that the merger would create substantial public benefits and no material detriment.
“The ACCC is alleging the tribunal made three reviewable errors,” ACCC chairman Rod Sims said in a statement on Monday.
“It (the ACCC) is therefore seeking clarification of these three points of law which are central to the tribunal’s assessment of Tabcorp’s proposed acquisition of Tatts.”
The ACCC is challenging the tribunal’s reasoning that the proposed merger could only be detrimental if there was a substantial lessening of competition.
Full Content: Herald Sun
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
UFC Reaches $375 Million Settlement in Antitrust Case
Feb 6, 2025 by
CPI
Brazilian Architecture Council Convicted of Antitrust Violations
Feb 6, 2025 by
CPI
Bipartisan Bill Seeks to Ban Chinese AI Software from US Government Devices
Feb 6, 2025 by
CPI
Senators Call for Investigation into RealPage Algorithm’s Impact on Military Housing Costs
Feb 6, 2025 by
CPI
ECB Seeks Faster Digital Euro Legislation Amid US Stablecoin Push
Feb 6, 2025 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – International Criminal Enforcement
Jan 23, 2025 by
CPI
The Antitrust Division’s Recent Work to Combat International Cartels
Jan 23, 2025 by
Emma Burnham & Benjamin Christenson
Information Sharing: The New Frontier of U.S. Antitrust Enforcement
Jan 23, 2025 by
Brian P. Quinn, Casey Kovarik & Michael Tubach
The Key Role of Guidelines on Exchanges of Information Among Competitors and the Divergent Transatlantic Paths
Jan 23, 2025 by
Rosa Abrantes-Metz & Albert Metz
Leniency, Whistleblowers, and Compliance
Jan 23, 2025 by
Richard Powers, Tara O’Malley & Cory Gordon