Fairfax is clear to buy rival property site Allhomes after the Australian Competition and Consumer Commission (ACCC) ruled it will not oppose the proposed acquisition.
Fairfax curretly operates the highly-visible Domain.com.au, particularly in NSW, while Allhomes.com.au is strong in ACT.
The ACCC notes that in comparison to its presence in other states, Domain was a weak competitor in the ACT and its market position was unlikely to change in the foreseeable future. The ACCC also notes that All Homes’ presence was limited in other Australian states.
“The ACCC concluded that the proposed acquisition was not likely to substantially lessen competition in markets for online or print real estate advertising in the ACT,” ACCC commissioner Dr Jill Walker said.
Meanwhile, the ACCC is yet to rule on Expedia's efforts to buy Wotif.com and is seeking further information. It states that it needs further information and clarification on whether the deal would lessen competition in the market for online accomodation bookings.
In a statement it said: "The ACCC is exploring whether the removal of Wotif from the Australian market has the potential to increase the rate of commissions charged to hotels and other accommodation providers in Australia."
The ACCC’s preliminary view is that bricks and mortar travel agents are unlikely to be a strong constraint on the operations of OTAs and therefore do not form part of the consideration.
“Commission rates charged by Expedia and Booking.com in Australia are lower than the rates charged by those companies in other parts of the world. The presence of Wotif may be a contributing factor to this difference. Market participants have expressed concern that the removal of Wotif as an independent competitor will allow Expedia to increase its commission rate,” it said.
The ACCC’s final decision will be deferred until 2 October 2014.
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