New Zealand’s competition enforcement and regulatory agency, The Commerce Commission, has knocked back the acquisition of Motorcentral, a Christchurch-based supplier of motor vehicle dealer management (DMS) software, by Trade Me, an online marketplace and classified advertising platform.
The Commerce Commission Chairman Dr Mark Berry said the Commission could not be satisfied that the merger would not be likely to substantially lessen competition in the relevant markets.
“The merger would combine Trade Me, which is the most popular online classified advertising platform for motor vehicle dealers, and Motorcentral, which is the largest provider of DMS products to independent motor vehicle dealers in New Zealand.
“Based on the evidence received, we could not exclude the real chance that this could result in a substantial lessening of competition in these markets, including deterring new entry.”
{loadposition peter}The Commission’s decision comes after Trade Me, in July last year, sought clearance to buy Motorcentral.
DMS software is used by motor vehicle dealers to manage their businesses and may include functionality such as keeping track of inventory, customer relationship management, and uploading vehicle listings to online advertisers. Trade Me currently operates DealerBase which has some of those functions.