REG - Competition and Mkts - CMA update: NEC / SSS
29/04/2022 08:15
For best results when printing this announcement, please click on link below: http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220429:nRSc8458Ja&default-theme=true RNS Number : 8458J Competition and Markets Authority 29 April 2022 CMA finds competition concerns in merger of emergency service software suppliers NEC Software Solutions' purchase of SSS raises competition concerns in the supply of vital software to emergency services and transport customers. NEC and SSS are two of a small number of suppliers that supply essential software solutions to emergency service providers (including police forces, fire and rescue services and ambulance trusts) as well as transport service providers (such as TfL and rail operators). These include: - 'integrated communication and control services' (ICCS) used by control room personnel in day-to-day duties such as receiving and making urgent phone calls to communicate with emergency response staff. - specialised software (referred to as 'Duties') to police forces to enable the planning and scheduling of shifts. Supply of this software requires significant expertise and experience. - records management systems (RMS) which enable the police to record and manage case-related information such as the processing of people in custody and case file management for prosecutions. The Competition and Markets Authority (CMA) found that for each of these three services, the market is relatively concentrated, with NEC and SSS generally being two of only three suppliers with a large established customer base. The CMA considered the impact of the merger on these services and found that the deal gives rise to competition concerns with regard to all three software products. David Stewart, Executive Director, Mergers and Markets, said: "We all rely on our emergency services, and they rely in turn on essential services such as those provided by these two companies. The CMA's role is to ensure this deal does not undermine competition in this market, so police, fire and ambulance services across the UK have a choice of supplier and can secure the most reliable and innovative services available. "Ultimately the software NEC and SSS provide is paid for by the taxpayer and we can't risk higher prices or a lower standard of service. "It is now up to NEC to provide us with undertakings to address our concerns." To address these concerns, the CMA has given NEC until 9 May 2022 to offer an undertaking that might be accepted. If no undertaking is offered that addresses the CMA's concerns, then the deal will be referred to a more in-depth investigation. Notes to editors 1. SSS refers to SSS Public Safety Limited (formerly Capita (SSS) Limited) and Secure Solutions USA LLC (formerly Capita Software (US) LLC). 2. In the ICCS market, the third established player is Frequentis. In the Duties market, the third player is Crown and, to a lesser extent, Totalmobile also competes with NEC and SSS. In the RMS market, the third established player is Niche. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com (mailto:rns@lseg.com) or visit www.rns.com (http://www.rns.com/) . RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy) . END MERUKSVRUKUSURR