Competition watchdog chief Gina Cass-Gottlieb says the Albanese government’s mergers shake-up is needed to stop big tech entrenching market power by snapping up start-ups, despite warnings it could have a chilling effect on venture capital funding.

Citing Facebook parent Meta’s purchase of Instagram in 2012 and WhatsApp in 2014, Ms Cass-Gottlieb said it was important the Australian Competition and Consumer Commission was able to think broadly about merger effects.