The Australian Competition and Consumer Commission (ACCC) has officially launched its probe into the proposed merger of print giants PMP and IPMG, its decision to oppose or approve the deal slated for next month.

Its informal review of the merger kicked off on November 2, the consumer watchdog is set to closely investigate how the proposed deal would likely impact industry competition.

The ACCC says it is also accepting industry submissions from interested parties until November 18.

ACCC effectively killed a proposed merger between PMP and IPMG in 2001, the watchdog stating the deal would significantly reduce competition in the print market.

“The proposed merger raises substantial competition concerns in respect of both printing and magazine distribution such that it is likely to result in a breach of section 50 of the Trade Practices Act 1974,” the ACCC said at the time.

“Section 50 prohibits mergers and acquisitions that will have the effect, or are likely to have the effect, of substantially lessening competition in a market.”

[Related: PMP shares skyrocket after merger news]

Fifteen years ago, the ACCC justified its opposition of the merger by calculating a combined PMP and IPMG would give the new entity 75 per cent of their market, worth in excess of $1.5bn per annum.

However this would not be the case today with IVE, Franklin Web, AIW and others all performing strongly, and both PMP and IPMG are likely to argue that it is in the communication business not the printing business, and its clients have multiple channel options, most of which were not around 15 years ago.

The ACCC findings are slated for reveal on December 22.

According to the ACCC, an informal view not to oppose a merger does not provide the merger parties with protection from legal action by the ACCC or any other parties.

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