The latter is described as "a London based global provider of credit reporting services". It is one of the global consumer data and analysis giants that provides services to the private and public sectors, on occasion acting as a surrogate for national intelligence agencies.
Experian Australia Credit Services is described as a new body. In practice the dominant consumer credit groups are taking minor stakes in the local offshoot of a very big data cruncher. Experian has a substantial Australian presence.
The ACCC states that -
The financial institutions that will have minority interests in the proposed joint venture are currently the largest purchasers of credit reporting services and are important providers of a key input, credit information, to Australian credit reporting agencies.The ACCC notes that -
"Following an extensive public review, the ACCC formed the view that the proposed joint venture would be unlikely to substantially lessen competition in any of the markets examined," ACCC chairman Rod Sims said.
The ACCC's investigation focused on whether the financial institutions would have the incentive to restrict the supply of credit information and customers to incumbent credit reporting agencies and in doing so negatively effect the competitive position of these agencies.
The ACCC also examined whether the financial institutions could leverage their position in the joint venture to discriminate against rival lenders.
The ACCC consulted with incumbent credit reporting agencies, as well as industry experts and customers of the incumbent reporting agencies. The ACCC also examined the joint venture parties' internal documents.
Mr Sims said the ACCC was satisfied that the six financial institutions are sponsoring Experian Group's entry in order to bring a new supplier into the market for credit reporting services and achieve lower prices.
The ACCC formed the view that the principal incentive of the financial institutions, in sponsoring Experian Group's entry to the Australian market and in their provision of credit information to credit reporting agencies, is to foster competition among their suppliers rather than to replace one dominant supplier with another.
A Public Competition Assessment detailing the ACCC's reasons for its decision will be available on the ACCC's website in due course.As I've noted elsewhere, Experian originated as a data processing unit of US high technology conglomerate TRW before being acquired by GUS (the UK retailer - formerly Greater Universal Stores - with interests that include Burberry) in 1996. In 2001 it was estimated that Experian's North American revenue was over US$1 billion. Experian was spun off from GUS in 2006 and has since expanded aggressively. For example it paid US$240 million for internet metrics specialist Hitwise in 2007 and £600 million for 70% of Brazilian credit reference group Serasa (with 160 million files).
As of 2005 Experian claimed to maintain credit information on 205 million consumers and 14 million businesses in the US, to process 1.4 million consumer transactions per day and to have classified "more than one seventh of the world's population into demographic groups for target marketing".
In 2001 it states that -
Our information helps companies evaluate the risks and rewards associated with providing credit to consumers and businesses, and our services help clients maximize the profitability of their portfolios. Besides obtaining credit reports, clients can use Experian's notification services to drive marketing efforts, manage risk and improve customer relationships.
Experian's applications help retailers conduct secure transactions and prevent fraud. Our credit services also assist clients in every phase of debt collection. With our industry-leading information assets, lenders can make better lending decisions, thereby reducing processing time while minimizing risk. ...
Total revenue for the year ended 31 March 2011 was US$4.2 billion. Experian employs approximately 15,000 people in 41 countries and has its corporate headquarters in Dublin, Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil
