The Australian Competition & Consumer Commission is concerned that Rupert Murdoch's plan to buy 15% of Network Ten Holdings could give News Corp. "too much power over the free-to-air network and reduce competition for sports rights" and TV advertising, according to Max Mason of the SYDNEY MORNING HERALD. In "a blow to the Murdoch family's strategy to increase its grip on the Australian TV industry," the ACCC said that Foxtel, which is 50% owned by News Corp., could be "more likely to make joint bids for sports rights with Ten, potentially squeezing out Nine and Seven." That could lead to more sport being shown exclusively on Foxtel, which is owned by News Corp. and Telstra. ACCC Chair Rod Sims said that it would be "naive" not to consider Lachlan Murdoch's 8.5% stake in Ten was linked to the 15% of Ten that Foxtel wants to buy. Lachlan Murdoch is co-exec chair of News Corp. with his father, Rupert. The ACCC observations appeared in a "statement of issues" published on Monday discussing the proposed deal. It will decide whether to approve or veto the purchase on Oct. 22 (SMH, 9/15). THE AUSTRALIAN reported the regulator is "also concerned" the investment may "reduce or even eliminate competition between Foxtel and Ten for the supply of advertising services." Ten responded to the statement less an hour after the ACCC's announcement, saying it "firmly considers that the objective evidence establishes that the proposed transactions will increase competition in the relevant markets." The broadcaster said it was in the process of "reviewing" the ACCC's document, and preparing a "more detailed response." 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." He added that the ACCC was also concerned a "joint sales alliance" between Ten and Foxtel may lead to "further consolidation" in the advertising market (THE AUSTRALIAN, 9/14).
