Mergers and acquisitions between online automobile-marketplace platforms: Responses by competition authorities in South Africa, Australia, and the United Kingdom

Abstract

This study explores how competition authorities in three jurisdictions—South Africa, Australia, and the United Kingdom—have responded to proposed corporate mergers and acquisitions involving online intermediation platforms that provide automobile marketplaces. The article examines the notified (and ultimately prohibited) MIH eCommerce Holdings acquisition of WeBuyCars in South Africa; the notified (and authorised) Gumtree acquisition of Cox Media in Australia; and, in the UK, the notified (and authorised) eBay acquisition of Motors.co.uk. The author evaluates the competition considerations that came to the fore in each of these three cases and, based on these determinations, the competition authorities’ decisions. The article then highlights some of the complexities that digital online intermediation platforms pose for competition authorities, and some of the possible ways in which the complexities can be managed.

Keywords

• Potential Competition
• Merger Control
• Digital Markets
• Killer Acquisitions
• Market Definition
• Online Automotive Classifieds