The ACCC has outlined preliminary competition concerns with
"We are concerned that the proposed acquisition would be likely to substantially lessen competition in the supply of school information software and student finance software to NSW public schools," ACCC Commissioner
Sentral and School Bytes are two out of three suppliers in NSW that offer a comprehensive range of school administration software, and because of their existing relationships with schools, they compete closely when cross-selling other categories of software.
The ACCC is also concerned that barriers to entry are high and it is difficult for schools to switch to completely new suppliers.
"The proposed acquisition would combine the two largest providers of student information software and student finance software to NSW public schools, significantly increasing concentration,"
"Post-acquisition, Sentral and School Bytes, would supply over 90 per cent of NSW public schools with student information software and student finance software."
"Although
The ACCC has received market feedback that has identified strong concerns about the impact of this proposed acquisition on schools.
While the
The ACCC is also concerned that the proposed acquisition will weaken price competition below the price caps during the term of the panel agreements, and when these agreements are re-negotiated, the price caps may be set higher than if the proposed acquisition did not occur.
The ACCC invites submissions in response to the Statement of Issues by
More information and the Statement of Issues is available on the ACCC's public register here:
Background
Sentral supplies school administration software to public and independent schools throughout
In
More information about the ACCC's preliminary competition concerns can be found in the Statement of Issues.
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(C) 2024 M2 COMMUNICATIONS, source