ComCom prints preliminary issues on Motorcentral sale

The Commerce Commission has published its statement of preliminary issues regarding the sale of web-based DMS Motorcentral to Trade Me, and is inviting interested parties to comment on the merger.

Those interested in submitting to the Commerce Commission are encouraged to email or write a letter to the registrar, with submissions closing on August 7.

In its statement of preliminary issues, the Commerce Commission says it will be focusing on whether the sale will reduce competition in the industry, and if the merged businesses would be able to foreclose rivals and render them less able to compete in the sector.

The Commission noted that there is an existing overlap between Trade Me and Motorcentral, as both offer website development and maintenance services, a DMS, to some degree (through Trade Me’s DealerBase), and vehicle information reports.

In their statement, the Commission said it would investigate the impact of a merger on these complementary services in greater detail.

The Commission said it would give clearance to a proposed merger “only if we are satisfied the merger is unlikely to have the effect of substantially lessening competition in a market.”

Currently, a decision on the merger is scheduled for September 5.

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