Pioneer DJ’s Acquisition of Serato Challenged Over Anti-Competitive Concerns: Report

AlphaTheta, the parent company of Pioneer DJ, announced in July its intention to acquire Serato, effectively bringing the two largest names in DJ hardware and software under one roof. 

But despite the obvious synergies such an acquisition would promise for both brands, not everyone in the sector is happy about the arrangement, namely the executive leadership team at InMusic. The competing American pro-audio company owns a number of DJ-focused brands, including Numark and Denon DJ.

The news of the merger blindsided InMusic, who has since begun retaining legal counsel in a number of global jurisdictions in an effort to challenge the merger, MusicRadar reports. Jack O’Donnell, InMusic's CEO, has also spoken out about what he sees as challenges that lie ahead for his company and consumers alike, should such a deal be approved.

Voicing his concerns over his company's existing working relationship with Serato, O’Donnell cited fears that the resulting industry giant would operate as an anti-competitive monopoly.

"When we work with Serato, we give them our product up to a year ahead of time so they can analyze it and put the software in," he said. "If I was handing it to the new dominant player, I'm essentially handing it to my competitor."

"In any market when you eliminate competition, it has an effect on consumers," O’Donnell elaborated. "It's going to raise prices, eliminate innovation and limit choice. So it's a big thing for a small industry."

Pioneer DJ's acquisition of Serato is currently under review by the New Zealand Overseas Investment Office.