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NEC and SSS (formerly part of Capita plc) blue light emergency services (including police forces, fire and rescue services and ambulance trusts) as well as transport service providers (such as TfL and rail operators).
Following a detailed Phase 2 investigation by the Competition and Markets Authority (CMA), an independent investigation team identified competition concerns relating to 2 specialist software product markets that both companies supply among others. Concerns relate to:
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Integrated Communication and Control Services (ICCS) software, used by control room personnel in day-to-day duties such as receiving and making urgent phone calls to communicate with emergency response staff – services that are critical to public safety.
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Duty Management Systems (Duties) software, used by police forces to plan and schedule staff shifts. The supply of this software requires considerable skill and experience
The CMA Group found that the loss of either business as an independent competitor would significantly reduce competition in these 2 markets. This could lead to UK emergency services paying more for the same software, stifling innovation of new features and products or resulting in less choice for consumers.
In order to restore competition, the CMA required NEC to sell both the ICCS and duty software businesses. The terms of the sale, including approval of the buyer of these businesses, will be determined by the CMA in due course.
Kip Meek, chair of the independent CMA inquiry group, said:
Emergency services, and the taxpayers they serve, rely on these essential software systems to carry out their vital work – whether it’s to deal with fires, crime or taking people to A&E.
We have found that this merger puts our Blue Light Services at risk of having to pay for their software at hurdles or have access to fewer or inferior alternatives.
By selling the parts of the business where mergers have caused problems, the companies will address our concerns and help restore competition in these important markets.
For more information, visit the NEC/ Capita merger inquiries page.
Notes to editors
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NEC Software Solutions UK Limited (NEC) and SSS Public Safety Limited and Secure Solutions USA (SSS).
- The CMA concluded that the following exchanges would be effective and proportionate remedies to address the significant lessening of competition:
- divestiture of NEC’s ICCS business (comprising NEC’s APD business (including Cortex), CallTouch and Stream); And
- Exchange of NEC’s duty business (consisting of NEC’s CARM business), or SSS’s duty business (consisting of SSS’s origin business) – NEC must sell one of these businesses but has the choice of which one to sell.
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The CMA’s Phase 2 investigation found that the merger did not give rise to competition concerns relating to the provision of a third software product – a record keeping system known as RMS, used by police forces to record case-related information.
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During the investigation the investigative team received evidence from NEC, SSS, Capita, customers, competitors, the Police Digital Service and other interested parties involved in the markets and sales process. It also looked in detail at who competed and won recent tenders, as well as the parties’ internal documents and business plans. The group also looked at the impact of anticipated technological changes on markets and competitors, particularly the move to cloud-based software.
- For media enquiries, contact the CMA Press Office on 020 3738 6460 or press@cma.gov.uk
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