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Motorists have been warned they may have to pay more for parking as the nation’s two largest parking and payment operators join forces.
The ACCC has warned that a merger between Orikan Group and Duncan Technologies, two of Australia’s largest providers of on-street parking solutions, could reduce competition.
ACCC Commissioner Philip Williams said: “We are concerned that the proposed acquisition will significantly lessen competition in the end-to-end on-street parking solutions market as Dunkin’ is a major competitor to Orikan.
The ACCC is concerned Australians may have to pay more for on-street parking. Photo: NewsWire / James Gourley
The ACCC said Orikan’s proposed acquisition of Duncan could enable Orikan to prevent other independent parking service providers, such as on-street parking meters, from competing effectively for council contracts.
Orikan is regarded as one of Australia’s parking and payment giants, with contracts with state governments and local councils across Australia and New Zealand, while Duncan supplies and maintains parking meters, enforcement software and infringement solutions.
On April 19, Orikan first requested the ACCC to conduct a preliminary assessment of the 100% acquisition of Duncan Technologies.
The ACCC welcomes submissions from interested parties until December 19 before making a final decision on the merger on March 13, 2025.
Dr Williams said: “We are concerned that, following the acquisition, Orikan will have the ability and incentive to prevent or restrict the integration of third-party products with its own central parking management system.
Experts say parking in popular suburbs can now cost up to $50 an hour. Photo: NewsWire/James Gourley
“We believe the proposed acquisition is likely to result in less competitive tender responses from local councils seeking on-street parking solutions and reduce innovation.”
Australia’s parking, payments and enforcement industry is worth approximately A$4.5 billion per year.
Saxon Hill of Vehicle Monitoring Systems, which provides technology to Duncan, said the merger of the two giants has eliminated competition in the industry, meaning that going to the beach or park could end up costing “up to $50 an hour”.
He said: “Orican takes about half of all local council contracts and Duncan takes about a quarter.
“If the two entities merge, then just like supermarkets, toll roads and airlines, one entity has a monopoly on the market and there is no natural competition. The market ends up being dominated by one giant – and everything becomes more expensive.
“Parking is inherently frustrating. Those parking meters have a preset price of $10 and drivers have to keep pressing to get the spot they want, but if you think it’s bad now, wait until the two dominant companies merge.”