The Competition and Markets Authority (CMA) has found that Imprivata’s proposed acquisition of Isosec raises competition concerns.
Imprivata and Isosec provide secure authentication management solutions to healthcare providers in England. These technologies can give staff protected access to sensitive patient data sourced from a central NHS IT system.
Following its Phase 1 investigation, the CMA has found evidence indicating that Imprivata and Isosec are important rivals in this area and part of the motivation for the takeover was the removal of a competitive threat from the market. Evidence also shows that competition between them is expected to grow in the future with the introduction of new products. In addition, the merging companies’ customers, including the National Health Service (NHS), have limited other options in terms of suppliers.
The CMA is therefore concerned that the merger could reduce choice and stifle innovation in authentication management solutions for accessing sensitive NHS data. This would have an impact on both non-NHS and NHS healthcare providers across England and could potentially lead to taxpayers receiving poorer value for money in relation to these services.
Joel Bamford, CMA Senior Director of Mergers, said, “Just like consumers, the NHS relies on competition between suppliers to keep prices low and drive innovation. The evidence we’ve seen from NHS customers and the companies’ own documents shows that Imprivata and Isosec would compete increasingly strongly if it wasn’t for their proposed deal. Losing this competition would lead to a worse outcome for the NHS and other healthcare providers. Unless the companies address our concerns, we will refer the deal to a more in-depth review.”
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DOJ and FTC Introduce Website for Reporting Anti-Competitive Healthcare Practices
Apr 18, 2024 by
CPI
US Congress Advances Legislation to Compel TikTok Sale
Apr 18, 2024 by
CPI
UK Financial Sector Advocates Enhanced Regulatory Accountability
Apr 18, 2024 by
CPI
Google and All 50 States Defend $700 Million Consumer Settlement
Apr 18, 2024 by
CPI
Colorado Enacts First Law to Protect Consumer Brainwave Data
Apr 18, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI