REG - Competition and Mkts - CMA update on NortonLifeLock / Avast

MicrosoftAnnouncement

03/08/2022 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:20220803:nRSC7412Ua&default-theme=true

RNS Number : 7412U  Competition and Markets Authority  03 August 2022

CMA provisionally clears NortonLifeLock / Avast merger

The CMA has provisionally cleared the anticipated acquisition of Avast by
NortonLifeLock following an in-depth merger investigation.

NortonLifeLock and Avast both offer cyber safety software to consumers under a
variety of different brands. Products include antivirus software (also known
as endpoint security software), privacy software (such as VPNs) and identity
protection software. The companies announced plans to merge in a £6 billion
deal in August 2021.

The Competition and Markets Authority (CMA) referred the merger for an
in-depth Phase 2 inquiry in March 2022, after identifying competition concerns
during an initial Phase 1 investigation.

Following a more detailed Phase 2 investigation, the CMA has now provisionally
concluded that the deal does not raise competition concerns in the UK.

The CMA's investigation has found that the supply of cyber safety software to
consumers is rapidly evolving. Providers of both paid-for and free services
are continually developing and improving their products over time to meet
different and changing customer needs.

While the CMA's Phase 1 decision raised concerns about the extent of
competition that the merged business would face, a more detailed analysis of
the deal has found that the merging businesses face significant competition.
This comes from McAfee - their main rival - plus, a range of other suppliers
that currently have a smaller market position in the UK.

The CMA also found that security applications provided by Microsoft, which
holds a unique position in the market as the owner of the Windows operating
system, are increasingly important alternatives for consumers.

In recent years, Microsoft has improved its free built-in security application
so that it now offers protection which is as good as many of the products
offered by specialist suppliers. In addition, applications recently launched
by Microsoft for its customers bring its cyber safety offering closer to those
of the merging businesses and are likely to further strengthen Microsoft as a
competitor going forward.

On this basis, the CMA considers that the merging businesses will continue to
face sufficient competition after the deal completes and has provisionally
concluded that the merger does not raise competition concerns.

Kirstin Baker, chair of the CMA inquiry group, said:

"Millions of people across the UK rely on cyber safety services to keep them
safe online.

"After gathering further information from the companies involved and other
industry players, we are currently satisfied that this deal won't worsen the
options available to consumers. As such, we have provisionally concluded that
the deal can go ahead."

The CMA welcomes responses from interested parties to its provisional findings
by 24 August. These will be considered ahead of the CMA issuing its final
report, which is due by 8 September 2022.

For more information, visit the NortonLifeLock / Avast merger inquiry page
(https://www.gov.uk/cma-cases/nortonlifelock-inc-slash-avast-plc-merger-inquiry)
.

 

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  MERGUGDIDSGDGDX