Telstra, TPG launch appeal against ACCC decision

Telstra and TPG have begun the formal process of challenging the ACCC’s decision to block their network and spectrum sharing deal.

Identical filings, made on 23 December 2022, have now been published by the Australian Competition Tribunal. 

After an inquiry launched in May 2022, in December the ACCC blocked the proposed deal.

The regulator said that while it acknowledged “some benefits” in the deal, “the proposed arrangements will likely lead to less competition in the longer term and leave Australian mobile users worse off over time, in terms of price and regional coverage”.

Both carriers immediately flagged their intention to appeal the decision.

Their submissions to the Australian Competition Tribunal claim the ACCC made two errors in its decision.

They say it was a mistake for the ACCC to say it “could not be satisfied that the deemed acquisition would not have the effect … of substantially lessening competition in relevant markets”; and that it could not be satisfied about the likely benefit to the public.

The carriers have asked the tribunal to set aside the decision, either unconditionally or subject to conditions.

Under the Competition and Consumer Act, if the tribunal reviews the decision without calling for new information, it must make a decision within 90 days (or extend the period). If it calls for new information, that can be extended to 120 days; and there’s room for a further 90 day extension to cope with complexity or special circumstances.