UK competition watchdog raises concerns over £6bn Avast buyout by cybersecurity rival
The UK’s competition watchdog has raised concerns over the £6bn buyout of Avast by fellow cybersecurity firm NortonLifeLock, after launching a probe into the deal in January.
The Competition and Markets Authority (CMA) announced this morning that the deal, which was announced in August, between close competitors could harm competition in the market, as there are few other significant rivals.
CMA executive director David Stewart said: “We are living more of our lives online and it is vital that people have access to competitive cyber safety software when seeking to protect themselves and their families.
NortonLifeLock’s proposed purchase of Avast could lead to a reduction in competition in the UK and ultimately a worse deal for consumers when looking for cyber safety software.”
With fears that UK consumers may see pricier, less cost-effective deals when looking for cybersecurity software, the CMA has given both firms five days to submit proposals addressing the concerns.
“Unless the companies can offer a clear-cut solution to address our concerns, we intend to carry out an in-depth phase 2 investigation,” the new CMA boss cautioned.
In a statement, NortonLifeLock (NLL) said the decision was “surprising”, adding that it believes the deal to “only benefit consumers across the globe, including in the UK”.
“NortonLifeLock remains confident that the transaction should be approved and does not intend to propose any Phase 1 remedies. The company will continue to constructively engage with the CMA and their review,” the company added.
An Avast spokesperson said: “The strategic logic for the merger with NLL remains the same, with the combined company becoming a leading global consumer Cyber Safety business sharing a common vision to empower digital freedom for everyone.
“We remain of the view that this transaction will only benefit consumers in the UK. We have worked collaboratively with the CMA throughout the review process so far and this will continue into the next phase.”