The Competition and Markets Authority (CMA) has decided to cancel its Phase 2 merger investigation into a deal between AlphaTheta and Serato, two companies involved in the manufacture and supply of DJ equipment and software globally.

The merger was subject to approval from the New Zealand Commerce Commission, which was denied, leading to the abandonment of the deal by AlphaTheta and Serato. Consequently, the CMA terminated its inquiry into the merger.

During its Phase 1 investigation, the CMA identified concerns that the merger would significantly increase the size of the supplier in the DJ software market, potentially affecting prices, quality, and innovation. Additionally, the deal raised worries about potential anti-competitive effects on DJ hardware markets by limiting access to Serato's software for AlphaTheta's competitors.

The CMA's investigation also highlighted fears that the merger could discourage innovation among AlphaTheta's DJ hardware rivals and lead to reduced incentives for collaboration with Serato, potentially hindering market competition and innovation.

The Phase 2 investigation into the merger commenced on 15 May 2024, focusing on the potential impacts on competition in the DJ equipment and software sectors.

For media inquiries, contact the CMA press office via email at press@cma.gov.uk or by phone at 020 3738 6460.