Proposed merger raises fears of ‘$50 an hour’ parking fee

Fears grow as the ACCC looks into a merger between two of Australia’s biggest parking and payment operators, which could see costs skyrocket.

Motorists are being warned they may have to fork out even more to park their cars as two of the nation’s biggest parking and payment operators join forces.

Orikan Group and Duncan Technologies are two of the largest suppliers of on-street parking solutions in Australia, with their merger likely to weaken competition, the ACCC warns.

“We are concerned that the proposed acquisition would substantially lessen competition in the market for end-to-end on-street parking solutions, as Duncan is the primary competitor to Orikan,” ACCC commissioner Philip Williams said.

The ACCC has raised concerns Aussies could have to pay more for street parking. Picture: NewsWire / James Gourley

The ACCC said Orikan’s proposed acquisition of Duncan could enable Orikan to prevent rival providers of stand-alone parking services, such as on-street parking metres, from competing effectively for council contracts.

Orikan is regarded as one of the nation’s parking and payment giants and has contracts with state governments and local councils across Australia and New Zealand, while Duncan supplies and maintains parking meters, enforcement software and infringement solutions.

Orikan first requested pre-assessment from the ACCC on a 100 per cent acquisition of Duncan Technologies on April 19.

The ACCC is welcoming submissions from interested parties until December 19 before a final decision on the merger is made on March 13 2025.

“We are concerned that following the acquisition, Orikan would have the ability and incentive to prevent or limit the integration of third-party products with their own central parking management systems,” Dr Williams said.

Experts say it could now cost up to $50 an hour to park your car in popular suburbs. Picture: NewsWire / James Gourley

“We consider that the proposed acquisition is likely to lead to less competitive tender responses to local councils seeking on-street parking solutions and reduce innovation.”

Australia’s parking, payment and enforcement industry is valued at about $4.5bn a year.

Saxon Hill, from Vehicle Monitoring Systems, which offers technology to Duncan, said the removal of competition in the sector via a merger of two of the biggest players meant a trip to the beach or the park could end up costing “up to $50 an hour”.

“Orikan account for about half of all local council contracts, while Duncan take up about a quarter,” he said.

“If these two entities are merged, it will be just like supermarkets, toll roads and airlines when one entity gets a stranglehold and there is no natural competition. The market ends up being dominated by a gorilla – everything just becomes more expensive.

“It is already frustrating to park as it is. Those meters that are preset at $10 and motorists have to keep pressing to get it to what they want, but if you think it’s bad now, wait until these two dominant companies merge.”