(Photo: ACCC)
October 6, 2016
The Australian Competition and Consumer Commission is seeking public feedback on the proposed acquisition by News Corporation of APN’s Australian Regional Media (ARM) publications.
The ACCC released a “Statement Of Issues” in regards to the sale on Thursday.
The proposed purchase would combine the two main newspaper publishers in Queensland, the ACCC noted.
ARM publishes 12 daily newspapers plus more than 60 community, non-daily and specialist publications – including the South Burnett Times and Central & North Burnett Times – in Queensland and northern NSW.
The ACCC is investigating the effect that this would have on competition for both readers and advertisers.
“One area of focus in the loss of competition between ARM’s paid regional newspapers and News’ The Courier Mail,” ACCC chairman Rod Sims said.
“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.
“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.
“In particular, the ACCC will test how important diversity of content and opinion is to readers when assessing the extent of competition between papers.”
The ACCC also noted that ARM and News both publish overlapping community papers in Caboolture / Bribie Island, south-west Brisbane, Brisbane’s northern bayside, Logan and Tweed Heads / southern Gold Coast.
Mr Sims said the ACCC was seeking to assess the effect on readers and local advertisers in these areas, and to assess whether the reduction in competition was significant.
“The ACCC will be assessing the importance of diversity of local content in these competing community publications,” Mr Sims said.
“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.”
The Statement of Issues can be downloaded from the ACCC website (890kb PDF)
The closing date for submissions is October 27.
Submissions can be forwarded by email (preferably in PDF format) to mergers@accc.gov.au with the subject “Submission re News/ARM proposed acquisition (attention Lisa Campbell/David Wang)”.
Submissions can also be faxed to (02) 9231-5652 or mailed to Mergers Branch, ACCC, GPO Box 3648, Sydney, NSW, 2001.
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In a statement to the ASX, APN News & Media said it was co-operating with the ACCC and was “confident the issues raised can be addressed”.
“APN strongly believes that regional media consolidation is required to help secure the future of regional newspapers in a constantly evolving media landscape,” the statement continued.
“As a result of the ACCC’s announcement, APN will adjust its timeline for the completion of the sale of ARM.”
Earlier this year, APN Directors – when recommending the sale to shareholders – noted there was no certainty that another buyer would be found for the business.
Shareholders voted overwhelmingly in favour of the proposed sale last month.
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