The consumer watchdog is concerned that News Corp’s proposed acquisition of APN News & Media’s regional publishing arm Australian Regional Media (ARM) may lead to a drop in competition in Queensland.
The Australian Competition Consumer Commission (ACCC) said the proposed acquisition would combine the two main publishers in Queensland.
Chairman Rod Sims says 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.
“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.
The watchdog will look at the publishing overlap between community papers from ARM and News in Caboolture/Bribie Island, south west Brisbane, Brisbane northern bayside, Logan, and Tweed Heads/southern Gold Coast.
“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,” Sim says.
The deal was announced in July of this year. The ACCC expects to announce its final decision on 1 December 2016.
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