The Australian Competition and Consumer Commission (ACCC) has announced that it will not oppose Vocus Group Limited's proposed acquisition of TPG Telecom Limited's fixed line business, which includes its enterprise, government, and wholesale customer base, as well as its fibre and transmission networks.

Vocus is a provider of fibre and network services primarily targeting government, enterprise, and wholesale customers, while also offering retail telecommunications services to small and medium-sized businesses. TPG, on the other hand, is a significant player in the telecommunications sector, supplying fixed broadband services to various customer segments, including consumers and businesses.

The ACCC's investigation focused on the competitive dynamics between Vocus and TPG in the data network and connectivity services market, particularly for large enterprise and government customers. The findings revealed that Vocus primarily serves large enterprise and government clients, whereas TPG is more concentrated on the small and medium enterprise market.

Furthermore, the ACCC noted that the introduction of NBN Co's wholesale Enterprise Ethernet product in 2018 has lowered barriers for new entrants, allowing smaller providers to compete for larger customers. Post-acquisition, Vocus is expected to continue facing strong competition from other major players such as Telstra, Optus, and Aussie Broadband.

The ACCC also evaluated the potential impact of the acquisition on fixed line voice services, NBN wholesale aggregation services, and data centre, cloud, and security services. Ultimately, the commission concluded that the acquisition would not likely lead to a substantial lessening of competition in any relevant market.

In assessing the merger, the ACCC applied the legal framework outlined in section 50 of the Competition and Consumer Act, which prohibits acquisitions that may substantially lessen competition.