On-street parking company Orikan’s proposed acquisition of key competitor Duncan Technologies has raised eyebrows at the Australian Consumer and Competition Commission (ACCC), leaving doubts as to whether the purchase will be given the green light.

The ACCC outlined its “preliminary competition concerns” in a Statement of Issues released on Thursday.

Orikan and Duncan are two of the largest suppliers of on-street parking solutions in Australia, the ACCC said.

Orikan.

“We are concerned that the proposed acquisition would substantially lessen competition in the market for end to end on-street parking solutions as Duncan is the primary competitor to Orikan,” ACCC Commissioner Dr Philip Williams said. “We are concerned that following the acquisition, Orikan would have the ability and incentive to prevent or limit the integration of third-party products with their own central parking management systems.”

Williams said the proposed acquisition “is likely to lead to less competitive tender responses to local councils seeking on-street parking solutions and reduce innovation”.

The ACCC said it was “concerned that the proposed acquisition may enable Orikan to prevent rival providers of standalone parking services, such as on-street parking meters and enforcement and infringement systems, from competing effectively…”.

On-street parking solutions refer to a range of products and services, including parking meters, enforcement software, sensors, parking apps and central management systems, the ACCC said. The main customers are local councils.

Other industry

Duncan Technologies.

“Orikan supplies a suite of on-street parking solutions primarily to local councils in Australia. Duncan supplies and maintains parking meters, enforcement software and infringement solutions. As part of its end to end on-street offering, Duncan resells payment apps, sensors and automated number plate recognition from third-party suppliers,” the ACCC said.

“Other providers of on-street parking solutions in Australia include Flowbird, Arthur D. Riley and Smarter City Solutions.”

The ACCC has not reached a “concluded view” on any of the issues outlined, but is inviting responses to be submitted by December 19, 2024. Parties can contact the ACCC via [email protected].