ACCC starts review of Google's Mandiant buyout

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ACCC starts review of Google's Mandiant buyout

Seeks public views.

Google’s US$5.4 billion (A$7.8 billion) buyout of cyber security firm Mandiant will be reviewed by Australia’s competition watchdog.

The Australian Competition and Consumer Commission (ACCC) opened an informal review - effectively a mechanism that allows parties in a merger to canvas the commission’s views - on Friday last week.

In an accompanying letter to the market, the ACCC sought public comment on the buyout and on any competitive issues it could create in the cloud, cyber security software and consultancy markets.

In particular, the ACCC is seeking views on whether the acquisition could “impact competition in markets for the supply of ‘cloud services’ in which Google is an active competitor though its Google Cloud brand”; and whether it could impact other markets where Google also has commercial interests.

Submissions to the ACCC process close on July 18.

The US Department of Justice (DOJ) has also opened an inquiry into the proposed deal.

In a climate of antitrust inquiries actions against hyperscale operators, the deal had been expected to receive close attention from regulators.

Google is likely hoping that bringing Mandiant into the fold will beef up its cyber security credentials in the cloud market, which it may be able to use to gain market share against AWS and Microsoft Azure.

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