The ACCC has issued a Statement of Issues citing three principle competition issues. We believe the acquisition of content is the key issue and believe it is serious enough to alter the nature of the proposed acquisitions.

Event – ACCC delays decision

As we foreshadowed in our 18 June report, there are sufficient concerns that the ACCC has issues a Statement of Issues into the proposed acquisitions between Foxtel and Ten. The ACCC intends to announce its decision by 22 October 2015.

Areas of concern

The ACCC’s preliminary view is that the acquisition of 15% of Ten by Foxtel (and Ten’s 24.99% acquisition of MCN) will substantially lessen competition in:

• The markets for the acquisition of content, particularly sports content;
• The markets for the supply of FTA and STV television services; and
• The markets for the supply of television advertising services.

But the ACCC does not consider that there will be substantially lessening of competition in the supply of SVOD services.