Salesforce is a global supplier of customer relationship management (CRM) software and Slack is an enterprise collaboration platform, which enables users to engage in direct messaging, group channel messaging, document sharing and limited intra-organisation voice-and-video-calling.
“Salesforce and Slack mostly supply different software with distinct purposes, so there is minimal direct competitive overlap between them,” Australian Competition & Consumer Commission (ACCC) Chair Rod Sims said.
“We focused on whether Salesforce having both CRM and team collaboration solutions could give rise to a substantial lessening of competition.”
Sims said the ACCC concluded that it is unlikely that the acquisition would result in Salesforce preventing Slack’s rivals in team collaboration solutions from competing effectively - and is unlikely to have the effect or likely effect of substantially lessening competition.
Similarly, the ACCC did not consider it likely that Salesforce’s rivals in CRM solutions would be competitively disadvantaged.
“Most interested parties raised no concerns. Market participants said that if Salesforce engaged in anti-competitive bundling or foreclosure conduct, customers could switch to alternative CRM solutions, including global enterprise software companies such as Microsoft, Oracle, SAP and Adobe. Similarly, customers could switch to alternative team collaboration solutions, such as Microsoft Teams,” Sims said.
“We consider, due to commercial and reputational risks, that Salesforce would be unlikely to disadvantage competitors by degrading interoperability between Salesforce’s CRM solution and competitors’ team collaboration solutions, or between Slack’s team collaboration solution and competitors’ CRM solutions.”
The ACCC said that Salesforce’s CRM solution and Slack’s team collaboration solution are differentiated and complementary offerings and noted that users of CRM solutions value the ability to integrate their solution with third party software and applications, and the same is true for users of team collaboration solutions.