Critics say ComCom's decision to block DJ software sale could chill investment

09:05 Critics say ComCom's decision to block DJ software sale could chill investment 

Critics say a recent decision by the competition watchdog to block the sale of a local DJ software company will have a chilling effect on investment in the tech sector.

The Commerce Commission last week declined the NZD $100 million merger between local provider Serato and Japanese-based AlphaTheta. It said the transaction would stymie competition, cause price rises, and lower product quality for consumers.

Serato was founded in the late 1990s and produces software for DJs, a market valued at USD $397 million. AlphaTheta's Pioneer DJ has around 80% of the DJ hardware market, while Rekordbox and Serato are considered the top two software suppliers globally.

The merger has now been abandoned following the Commerce Commission's decision.