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epay’s bid for Ezi-Pay blocked by Commerce Commission

 |  June 17, 2012

The Commerce Commission has blocked epay’s proposed acquisition of Ezi-Pay. epay and Ezi-Pay distribute pre-paid products such as calling cards and gift cards. The Commission found that the transaction would lead to substantially diminished competition in the market for distribution and in-store payment processing of pre-paid mobile phone top-ups. The following were deemed to exercise insufficient constraints upon the merged entity:

expansion of existing competitors;
new entry;mobile phone companies persuading consumers to switch to topping-up direct;
new entry;direct integration between mobile phone companies and large retail outlets;
new entry;
countervailing power of mobile phone companies.

Full content: Commerce Commission


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