PLANS to merge BPay Pty Ltd, eftpos Payments Australia Limited and NPP Australia Limited will hurt small businesses and consumers, the Pharmacy Guild of Australia warns.
In its submission to the Australian Competition and Consumer Commission (ACCC) the Guild noted that the vast majority of pharmacies are classed as small businesses and "are more vulnerable to business costs and economic challenges" than larger companies.
"The Guild is very concerned over the impact this merger could have on our smaller members, especially where it appears there is no desire to give small business a meaningful voice on how this amalgamation would operate and ensure that businesses of all sizes are heard," the Guild said.
"If the entity is approved, it may lack the incentive needed to help small business in reducing costs to assist business viability.
"It is noted that there is a proposal for a small business subcommittee, however, the Guild believes the voice of the small business community should be at the top table and not a subcommittee.
"Small business should be afforded equal representation to that of the major banks and in the absence of that certainty, we are unable to support the proposed amalgamation as it currently stands."
With Australia becoming an increasingly cashless society, the Guild said the merger was likely to reduce competition and increase fees, prompting the organisation to call for greater access to Least Cost Routing (LCR) to assist in reducing costs.
"The Guild is of the view that the proposed merger does little to nothing to pursue an increase in the availability of LCR," it said.
"It is our belief that the proposed merger would make it more difficult for new players to enter the market and therefore would be unlikely to put downward pressure on merchant fees."
The above article was sent to subscribers in Pharmacy Daily's issue from 13 May 21
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