ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

Written on the 8 December 2016 by Paris Faint

ACCC GIVES GO-AHEAD FOR NEWS CORP TO BUY ARM

NEWS Corporation (ASX: NWS) has been given the green light to acquire Australian Regional Media (ARM) from APN News and Media (ASX: APN), following a review by Australia's competition watchdog.

The Australian Competition and Consumer Commission (ACCC) launched its review in August, and shortly after published a 'statement of issues' on October 2016 to gauge public response to the proposed acquisition.

After it received little negative feedback from surveyed readers and advertisers, the organisation decided not to act against the buyout of ARM's 58 separate publications and associated websites.

ACCC Chairman Rod Sims says there isn't an alarming competition overlap, despite the fact News and ARM are the two largest paper publishers in the state.

"The ACCC reviewed the acquisition very closely," says Sims.

"However, feedback from readers raised very few concerns and suggested that there is not close competition between the paid daily Queensland papers published by News and ARM.

"ARM's paid daily regional newspapers focus mostly on regional and local news and there is limited overlap with The Courier Mail which focuses on greater-Brisbane, state and national news."

The watchdog probed several key areas including south west Brisbane, Caboolture, Logan, Tweed Heads and the Southern Gold Coast.

While the ACCC conceded that some stakeholders may be stripped of choice, Sims says an adequate amount of options would still exist.

"This transaction will mean that readers in those areas who still value a community newspaper format are likely to face reduced choice," says Sims.

"However, the ACCC concluded that, overall, a sufficient range of local news choices and advertising options would remain available in these areas."

"Although some concerns were raised by small businesses and ad agencies in these local areas, most acknowledged that print advertising was of declining importance and identified other advertising options if News attempted to increase rates."

The ACCC also factored the decline of readership and advertising revenue generated by modern print media into their decision.


Author: Paris Faint

Latest News

GUVERA ESCAPES WIND-UP ORDER

GUVERA has avoided being wound up after a claim for a $1.78 million debt by Kwong Properties was dismissed at the ...

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

WESFARMERS' COAL BUSINESS ON FIRE

WESFARMERS (ASX: WES) has lifted its first-half profit guidance due to surging coal prices and higher than expected c...

SIXTH CONSECUTIVE RECORD PROFIT FOR AP EAGERS

AP EAGERS (ASX: APE) will beat guidance with its sixth-consecutive record profit when it reports its full year result...

Related News

CONSUMERS PESSIMISTIC ENTERING 2017

CONSUMER confidence remains at its weakest point since April 2016, according to the latest Westpac Melbourne Institut...

RISE OF STARTUP SUPPORT PROGRAMS NOT AS ROSY AT IT SEEMS

ENTREPRENEURIAL cultivation companies in Australia are appearing quickly, but questions have been raised about whe...

SMES TAKE RETAIL MARKET SHARE AS CONSUMERS CHOOSE PERSONALISATION

IN a battle for the hearts and wallets of Australian consumers, it appears that small and medium retail businesses...

KNOWLEDGE WORKERS AMONG MOST SOUGHT AFTER IN 2017

BUSINESSES searching for efficiencies and improved systems are in search of knowledge workers early this year, say...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter