Motorists could soon pay up to $50 an hour to park if two of Australia’s biggest operators join forces, according to experts and Australia’s consumer watchdog.
Orikan Group has submitted a proposal to acquire rival Duncan Technologies, raising fears the potential merger could make parking more expensive.
Both companies offer various services and applications to manage parking facilities and operate the majority of parking meters throughout Australia.
Saxon Hill, of Vehicle Monitoring Systems, which provides technology solutions to Duncan Technologies, warned the move could lead to motorists paying ridiculous prices for parking.
“Orikan represents about half of all council contracts, while Duncan represents about a quarter,” Hill said. NCA Newswire.
“If these two entities merge, it will be like supermarkets, toll roads and airlines when one entity gets absolute dominance and there is no natural competition.”
Hill said the acquisition will make parking more frustrating and the merger will exacerbate the existing challenge motorists face finding parking.
“Those meters are preset at $10 and motorists have to keep pushing to get to what they want, but if you think it’s wrong now, wait until these two dominant companies merge,” he said.
Motorists could soon pay up to $50 an hour to park if two of Australia’s biggest parking operators merge.
The Australian Competition and Consumer Commission (ACCC) echoed Mr Hill’s concerns.
ACCC Commissioner Dr Philip Williams said the move will deprive other businesses of the opportunity to enter the market and offer low-cost parking.
“We are concerned that the proposed acquisition will substantially reduce competition in the end-to-end on-street parking solutions market, as Duncan is Orikan’s main competitor,” Dr Williams said.
“We consider that the proposed acquisition is likely to lead to less competitive tender responses for councils seeking on-street parking solutions and will reduce innovation.”
Australia’s consumer watchdog expressed concern that the acquisition would reduce competition, making parking more expensive for motorists.
Orikan currently has contracts with state governments and councils in Australia and New Zealand.
Duncan Technologies supplies and manages parking meters and also provides software and infringement solutions.
Orikan first requested an ACCC pre-assessment on its proposal to fully acquire Duncan Technologies on April 19.
The ACCC said the agency has not reached a conclusive opinion on its concerns.
The ACCC initially stated that a decision would be made this week by December 5, but has since postponed the date to December 19.
The Australian parking, payments and enforcement industry is worth $4.5 billion a year.
The latest figures from property group Ray White found Brisbane motorists pay the most for parking – $79.83 a day.
The Queensland capital is closely followed by Sydney with $77.67 a day and then Melbourne with $67.49.