The Australian Competition and Consumer Commission (ACCC) has raised concerns over cloud accounting software firm MYOB’s proposed acquisition of GreatSoft, claiming that it could “substantially” lessen competition in the accounting software market.
“We are concerned that if MYOB acquired GreatSoft, there would only be three major suppliers of practice management software to medium-to-large accounting firms,” ACCC commissioner Stephen Ridgeway said.
Ridgeway believes GreatSoft has the potential to grow into a larger company, noting it has won “several medium-to-large MYOB customers.”
“We received feedback that accountants now have a strong preference to move from traditional desktop-based software, like MYOB’s, to online ‘cloud’ software,” he said.
“While GreatSoft’s customer base is currently small, the ACCC is investigating its potential to become a strong competitor as it appears to be a viable choice for many medium-to-large firms wishing to migrate to the cloud.”
Additionally, Ridgeway said while there are alternative products in the market available, the adoption of those by medium-to-large account firms has been limited.
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