After working with industry partners and investing several million dollars to develop a multi-platform system (MPS) that would promote simultaneous bidding online, Adesa has announced recently that it will withdraw from the initiative.
Citing the current competitive landscape, changes in technology and antitrust risks, Peter Kelly, president of Adesa’s Digital Services Group, said the company’s industry partners have been unable to agree on the best way to execute an MPS.
Kelly said the proposed MPS initiative as it is currently structured would result in more technology requirements and related expenses. It would also raise new barriers to entry for smaller industry players, reducing competition among the auctions and increasing costs for buyers, sellers and ultimately, retail consumers.
“After much deliberation, we have concluded that the potential benefits to customers of the currently proposed MPS are not commensurate with all of the costs and risks,” said Kelly in a press release.
