The UK’s competition watchdog has put the brakes on NortonLifeLock’s £6billion planned purchase of Avast, amid competition concerns.
The Competition and Markets Authority said the duo are close competitors with few significant rivals and the proposed deal could therefore lead to a ‘reduction in competition in the UK market’.
‘This could lead to UK consumers getting a worse deal when looking for cyber safety software in the future’, it added.
Probe: The UK’s competition watchdog has put the brakes on NortonLifeLock’s £6bn planned purchase of Avast
Avast shares were down by more than 10 per cent in early trading in the wake of the announcement to 585p, taking the stock to a 5.6 per cent year-to-date loss.
NortonLifeLock and Avast now have five working days to submit proposals to address the CMA’s concerns.
The CMA then has a further five working days to consider whether to accept any offer instead of referring the case for an in-depth phase two investigation.
David Stewart, executive director at the CMA, 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.
‘Unless the companies can offer a clear-cut solution to address our concerns, we intend to carry out an in-depth phase 2 investigation.’
NortonLifeLock and Avast both offer cyber safety software to consumers under a variety of different brands, the CMA said.
Products include antivirus software, also known as endpoint security software, privacy software, like VPNs, and identity protection software.
In January, the CMA launched its merger inquiry by notice to the parties.
