Tech investors have rejected the government’s planned merger reforms, saying they could kill off start-ups. 

In a significant policy shift, Treasurer Jim Chalmers unveiled plans to overhaul Australia's merger laws during the Annual Bannerman Lecture, aiming to intensify scrutiny on business consolidations to safeguard economic competitiveness. 

While the reforms have been broadly welcomed for promising to enhance consumer choice and market dynamism, they have stirred apprehension within the technology sector.

Chalmers' announcement, highlighting the detrimental effects of unregulated mergers on innovation, productivity, and consumer choice, has been met with particular concern among technology industry stakeholders. 

They argue that the proposed changes, requiring mandatory notification and ACCC approval for mergers surpassing certain thresholds, might inadvertently stifle the very innovation the economy seeks to promote.

The tech industry's apprehension stems from the belief that stringent regulatory measures could deter investment in start-ups, critical for technological advancement and economic growth. 

Veteran venture capitalist Daniel Petre has expressed concerns that setting the notification threshold too low could complicate the investment landscape, hindering the sector's ability to drive returns through acquisitions by larger entities. 

Others have highlighted potential drawbacks including the proposed fees for ACCC reviews, ranging between $50,000 to $100,000, which could dampen deal appetite further. 

There is concern that the additional regulatory layers and costs might slow down or even halt the pace at which start-ups are acquired, affecting the lifecycle of innovation funding and development.

The ACCC has welcomed the proposal.