Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: ACCC releases statement of issues on television network acquisitions, (Sep 14, 2015)

By Linda O’Brien, J.D., LL.M.

The Australian Competition and Consumer Commission (ACCC) has released a Statement of Issues on the proposed acquisitions between television networks Foxtel Management Pty Ltd (Foxtel) and Ten Network Holdings Ltd (Ten), the ACCC announced today.

In June, the Commission commenced review of the proposed acquisitions under the Merger Process Guidelines. The Statement of Issues seeks more information on, and reaction to, the competition issues that have arisen in the ACCC’s review to date.

Foxtel proposes to acquire up to 15 percent of Ten, while Ten proposes to acquire a 24.99 percent stake in MCN, a supplier of advertising opportunities on subscription television channels. Ten will also have an option to acquire 10 percent of Presto TV, a joint venture between Foxtel and the Seven Network.

“The ACCC is concerned that the proposed acquisitions have the potential to substantially lessen competition for the supply of free-to-air television services in Australia, particularly in the broadcasting of sports content,” ACCC Chairman Rod Sims said. “The proposed acquisitions may increase the likelihood of Ten and Foxtel entering into joint bids and other commercial arrangements for acquisition of sports rights, to the exclusion of other free-to-air networks. Such arrangements could enhance Ten’s ability to acquire the rights to sports, including premium sports, and could increase the likelihood of more sport being shown exclusively on Foxtel.”

“Given the importance of sporting content to a broadcaster’s ability to compete strongly with other free-to-air networks, the ACCC is concerned that the advantage Ten would gain in acquiring sporting content may lead to a substantial lessening of competition in the free-to-air television market, or in the broader market for the supply of television viewing services,” Sims noted.

The ACCC has requested that comments from interested parties in response to the Statement of Issues be sent by September 28. The Commissions expects to announce its final decision on October 22.

News: AcquisitionsMergers Antitrust