Pioneer DJ and Serato merger denied by Commerce Commission

For DJs worldwide, Pioneer DJ and Serato are synonymous with the art and the tools that support the craft. A recent attempt to further align the two companies was recently rejected by the Commerce Commission of New Zealand.

Despite many users relying on Pioneer DJ and Serato products, and the often seamless integration of the two, they remain two separate organizations. Since their audience and aims align so often, the two companies, led by Pioneer’s parent company Alpha Theta, proposed a merger in July of 2023 to New Zealand’s Commerce Commission (NCZZ). Now the chairman of the commission, Dr John Small, has revealed that the committee found that the merger would give the company a significant advantage and dominance over the DJ hardware and software industries.

“The evidence gathered by the Commission indicated that Serato and rekordbox compete closely in the DJ software market. While other DJ software providers would remain in the market, we did not consider these rivals, or the possibility of a new DJ software provider entering the market in the near term, would be sufficient to replace the level of competition that would be lost with the merger. We therefore could not exclude a real chance that the merger would result in a substantial lessening of competition for DJ software, resulting in price rises to consumers and/or a lower quality software offering,”

-Dr John Small

The findings of the NCZZ align with those of UK Government who revealed in May similar concerns over the size and dominance of Alpha Theta should the merger occur. Both entities are expected to appeal the decision as Pioneer and Serato have already released initial statements in regards to the decison. In the joint statement between the two companies, they said, “We disagree with and are disappointed by the ruling of the New Zealand Commerce Commission against the acquisition. As AlphaTheta and Serato, we believe that the proposed agreement would have accelerated our combined ability to deliver incredible products to DJs and Producers around the world by capitalizing on our complementary expertise.”

Both companies remain committed to their continued growth and relationship as they look to provide hardware and software to DJs worldwide.

Tags: Serato, Pioneer, Alpha Theta, New Zealand Commerce Commission, DJ, hardware, software,