The Bundeskartellamt has today cleared plans by NortonLifeLock Inc., Tempe, USA, to acquire the cyber security software provider Avast plc, London, UK.

NortonLifeLock and Avast offer cyber security software to private users worldwide. The product portfolios of both companies centre on software that provides protection against viruses and malware. Just like their direct competitors, both businesses are adding more and more functions to their software to protect users against digital threats or to optimise device performance.

Andreas Mundt, President of the Bundeskartellamt: “The merger will result in the creation of a worldwide leading provider of cyber security software for private users which, especially in Germany, will achieve very high market shares. However, the need of private users to protect their devices against malware is increasingly being met by security solutions that are already integrated in their operating systems and by applications offered by platform operators. These solutions provide an ever-increasing level of protection and are often made available to users free of charge. As a result, there will be sufficient competition even after the merger.”

The Bundeskartellamt’s market investigation has shown that functions providing protection against malware which are integrated or preinstalled in operating systems in particular exert significant competitive pressure on independent security software providers. It also became clear that the barriers to entry are rather low in the market for cyber security software for private users. As a result, despite the high combined market shares, the merger project ultimately does not raise any concerns under competition law.