Regulators have some concerns about a proposed purchase by finance software giant MYOB.

MYOB is looking to acquire GreatSoft. Both supply practice management software to medium-to-large accounting firms.

The competition regulator is concerned that the deal may substantially lessen competition in the accounting software market.

“We are concerned that if MYOB acquired GreatSoft, there would only be three major suppliers of practice management software to medium-to-large accounting firms,” ACCC Commissioner Stephen Ridgeway said.

“GreatSoft is a new entrant that has won several medium-to-large MYOB customers, and we are looking into its potential to grow stronger.

“We received feedback that accountants now have a strong preference to move from traditional desktop-based software, like MYOB’s, to online ‘cloud’ software. While GreatSoft’s customer base is currently small, the ACCC is investigating its potential to become a strong competitor as it appears to be a viable choice for many medium-to-large firms wishing to migrate to the cloud,” Mr Ridgeway said.

The ACCC says it is taking submissions from interested parties in response to its Statement of Issues.