Topcashback and Quidco merger 'may lead to lower cashback rates' - MSE News

Former_MSE_Callum

Topcashback’s proposed purchase of Quidco may lead to lower cashback rates for shoppers, the competition watchdog has said...

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'Topcashback and Quidco merger 'may lead to lower cashback rates''

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michaels

What are the odds of some govt quango understanding the new online economy well enough to figure out just how anti-competitive this merger is and put a stop to it? About nil I suspect hence the smarmy remarks from TCB

One-Eye

The merger may well lead to lower cashback rates, it might also lead to higher rates. A retailer might be happier to offer higher rates if they only have to deal with a single group. It only takes one retailer to offer a higher rate and their competitors will feel obliged to compete. The merged group will also have more clout when negotiating with retailers.

Should the CMA also consider those who buy from retailers without going through the cashback process? It seems a little petty to be worrying about a near monopoly on less than 10% of a retailer's sales, when that 10% are paying less than the other 90%.

bristolleedsfan

If merger goes ahead will be race to the bottom, retailers will want to offer as least cashback/discount off purchase as they can, clearly currently Quidco and TCB compete against each other to get rates enhanced as they each benefit from volume of business sold via their websites.

Currently Quidco and TCB are the only cashback sites that can get all retailer cashback offers and higher than normal 100% rates, if merger goes ahead the merged company wont even need to pass on all the commission it receives as the end user/cashback site member wont know what the true rate being offered by high paying retailers e.g BT Broadband actually are as wont be anything to compare rates with.

Both TCB and Quidco offer a Highest Cashback Guarantee promise if the merger goes ahead HCG wont be applicable for many financial merchants/Broadband Providers etc as no other cashback site can either get these merchants or if they can get them cant offer enhanced rates that are offered again example BT Broadband.