- The consumer watchdog flags potential competition concerns over a merger between two of Australia’s biggest anti-plagiarism software providers
- Turnitin is planning to purchase Ouriginal, but the businesses are two of only three major anti-plagiarism software providers in Australia
- As such, the Australian Competition and Consumer Commission (ACCC) is concerned the takeover could lead to less competition and higher prices
- Also of worry to the consumer watchdog is the barrier to entry that already exists in the anti-plagiarism software market
- Commissioner Stephen Ridgeway says the regulator is concerned Turnitin could be buying out a competitive threat to “protect its market position”
The consumer watchdog has flagged some potential competition concerns over a merger between two of Australia’s biggest anti-plagiarism software providers.
Turnitin announced its plans to take over competitor Ouriginal back in March. However, the Australian Competition and Consumer Commission (ACCC) raised concerns about the deal this week given the businesses are two of only three major anti-plagiarism software providers in Australia.
ACCC Commissioner Stephen Ridgeway said Turnitin was by far the largest provider of this type of technology to Australian universities, and the ACCC was concerned that the proposed Ouriginal takeover could “substantially lessen competition in an already highly concentrated market”.
“Ouriginal, which is a large supplier in Europe, has far fewer customers in Australia than Turnitin,” Mr Ridgeway said.
“However, it is one of Turnitin’s only competitors in the higher education sector and may develop into an important competitive constraint on Turnitin.”
A lack of competition, the ACCC said, could lead to higher prices or reduced service levels for the Australian higher education sector.
“Some stakeholders have suggested to us that Ouriginal is cheaper and may have a more innovative product compared to Turnitin,” the commissioner said.
Also of concern to the consumer watchdog is the barrier to entry that already exists in the anti-plagiarism software market — a barrier that could be exacerbated if Turnitin absorbs Ouriginal.
“What we are focussing on here is whether Turnitin is buying out its most promising competitive threat to protect its market position,” Mr Ridgeway said.
“Other than Blackboard’s SafeAssign, no other anti-plagiarism software companies have established a competitive presence in our higher education sector to date, particularly among universities.”
While the ACCC’s concerns may not necessarily culminate in a decision to block the Turnitin-Ouriginal acquisition, Mr Ridgeway said it had published a statement of issues and was seeking further information about the deal.
The technology in question is mostly provided to higher education providers such as universities to scan student assignments on submission and compare them to a massive archive of online websites, journals, articles, other assignments and more.
The purpose of the scan is to identify any potential plagiarism and produce an “originality report” for teachers about the submitted assignment.
The ACCC has opened feedback for its statement of issues until September 27.