Odds are that it will still happen, but the proposed $36 million purchase of APN’s News and Media’s regional daily and other papers (housed in Australian Regional Media, or ARM) by News Corp may not be the done deal many (including News and APN) think it should be.
The competition regulator, the Australian Competition and Consumer Commission is looking for feedback from advertisers and users of the News Corp and APN’s regional newspapers before making a final decision on the takeover and sees competition problems in some areas, including Brisbane, the Sunshine Coast and Gold Coast regions.
The ACCC says it wants feedback to the statement of issues issued yesterday by October 27 and it expects to announce its final decision on December 1.
In the statement of issues (http://www.accc.gov.au/media-release/accc-invites-feedback-on-news-corporation’s-proposed-acquisition-of-apns-australian-regional-media-division), the Commission gave a very strong hint that it is worried by the lack of any competition in the print and news websites in parts of Queensland and northern NSW should the takeover proceed. It is also worried (”concerned”) about advertising.
Significantly the issues paper from the ACCC says; “The ACCC’s preliminary view is that the proposed acquisition may be likely to substantially lessen competition in the supply of local news and information to consumers/readers in Caboolture/Bribie Island, south west Brisbane, Brisbane northern bayside, Logan, and, Tweed Heads/southern Gold Coast.”
"The ACCC’s preliminary view is that the proposed acquisition may be likely to substantially lessen competition in the supply of local advertising opportunities to advertisers in the local overlap areas, namely: Caboolture/Bribie Island, south west Brisbane, Brisbane northern bayside, Logan, and, Tweed Heads/southern Gold Coast.”
The use of the phrase “substantially lessen competition” is significant because it indicates a higher level of concern at the ACCC to the basics of this takeover.It means News and APN will have to come up with some proposals to alleviate this concern. But it also means that if no one really complains about the deal from outside News and APN, it still could give it a tick.
“One area of focus is the loss of competition between ARM’s paid regional newspapers and News’ The Courier Mail. If the proposed acquisition proceeds, News will own both The Courier Mail and the local paid newspaper in nearly every city or town in Queensland. This may result in a reduction of quality and diversity of content available to readers. Reinforcing that concern is that both News and ARM have a strong presence in online news through their websites associated with the Queensland newspapers,” ACCC Chairman Rod Sims said in the statement.
The onus is now on News Corp and APN to assuage those concerns the ACCC.
Some of those arguments were used in the situation in Perth where a local news monopoly was allowed when the ACCC greenlighted the acquisition of the Sunday Times and an associated news website by Seven West Media from News Corp. Similar arguments are being used across the Tasman by APN and its spin off, NZM,and Fairfax Media to try and convince regulators there to allow a merger of the Kiwi print interests (APN’s NZ radio stations are also being included in the merger).
One point the ACCC didn’t mention this morning is that Brisbane’s top rating commercial radio station is Nova, which is owned by Nova Entertainment,in turn owned by Lachlan Murdoch, the Co chair of News Corp.
News Corp also owns nearly 15% of the Ten network, the third ranked commercial TV station in Brisbane and Queensland. Lachlan Murdoch also has a stake in Ten.
“The ACCC is seeking to understand whether the competitive tension between News and ARM is an important factor in maintaining quality and range of content, or whether the threat of readers shifting to alternatives, particularly alternative online news sites, will competitively constrain News after the acquisition,” Mr Sims said in his statement this morning
ARM publishes paid daily regional papers in Mackay, Rockhampton, Gladstone, Bundaberg, Hervey Bay, Gympie, Sunshine Coast, Toowoomba, Ipswich and Warwick. The ACCC will be looking closely at these areas.
“In particular the ACCC will test how important diversity of content and opinion is to readers when assessing the extent of competition between papers,” Mr Sims said.
ARM and News both also publish overlapping community papers in Caboolture/Bribie Island, south west Brisbane, Brisbane northern bayside, Logan, and Tweed Heads/southern Gold Coast. These are mostly free papers with a strong local focus. The ACCC is seeking to assess the effect on readers and local advertisers in those areas, and to assess whether the reduction in competition is significant.
“The ACCC will be assessing the importance of diversity of local content in these competing community publications. The ACCC is also seeking to understand whether advertising opportunities on other media platforms, such as local radio, pamphlets, and online, will constrain prices for advertising in the ARM and News community newspapers,” Mr Sims said.
