Australian competition body backs TBD takeover

The Australian Competition and Consumer Commission (ACCC) has joined the UK's Office of Fair Trading in giving the go-ahead to Amazon's acquisition of The Book Depository.

In its ruling, it said "the proposed acquisition was unlikely to substantially lessen competition in any relevant market". It argued the merged firm would continue to face competition from Australian and overseas-based retailers.

It also said barriers to entry in the Australian market were low and drop shipping, where fulfillment could be handled by a wholesaler, means retailers do not need significant infrastructure investment to set up a web business. It claimed several international competitors could "easily" increase their presence in the Australian market.

Last Wednesday, the Office of Fair Trading gave the go-ahead to the merger between the two companies, arguing it would not lead to a lessening of competition within the UK book industry.