New Zealand: Opened consultation on Commerce Commission statement of unresolved issues regarding AlphaTheta's proposed acquisition of Serato

On 29 May 2024, the New Zealand Commerce Commission (CC) issued a statement of unresolved issues concerning the proposed acquisition of Serato by AlphaTheta Corporation (ATC) and opened a public consultation until 13 June 2024. Regarding potential unilateral effects in the DJ software market, the CC expressed concerns about the close competition between the two companies. Specifically, CC questioned whether the remaining competitors in the market could sufficiently constrain the merged entity and whether new entrants or existing competitors could expand in a timely and substantial manner to limit the market power of the merged entity. Regarding potential vertical effects in the DJ hardware market, the CC is also concerned that the merged entity may have the ability and incentive to foreclose rival DJ hardware providers by controlling an important input. The CC noted that such foreclosure could substantially lessen competition in the relevant DJ hardware market.