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Barriers to entry: international networks

Deloitte’s response to the Competition Commission's working paper

Deloitte’s response to the Competition Commission's international networks paper


Deloitte’s response comments on the following areas:

  • The reasons for developing an international network
  • Views on the possible effect of a network on competition

Some of these issues are also covered in Deloitte’s responses to other working papers, namely a) Framework for the CC’s assessment and revised theories of harm, and b) Restrictions on entry and expansion.

Key Findings

Deloitte’s view, which is backed up by the experiences and evidence of the mid tier firms, is that the major mid tier firms all belong to large, established and growing international networks.  No firm has submitted to the CC that investment in its international network is a barrier to its growth with respect to FTSE 350 audits.  It is incorrect to conclude, therefore, that international networks are a barrier to entry that prevent mid tier firms from competing against top tier firms for a significant proportion of FTSE 350 audits.


Download Deloitte’s response to the Competition Commission's international networks paper (PDF)

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