Reports incoming Fairfax chairman Nick Falloon facing investigation over Macquarie merger

A bureaucratic bungle appears to have led to the incoming Fairfax chairman Nick Falloon being investigated by the media watchdog over a possible breach of the Broadcasting Services Act following the merger of Fairfax and Macquarie Radio networks.

The companies had to seek prior approval from the Australian Media and Communications Authority (ACMA) for its directors to temporarily breach broadcasting rules by holding more than two radio licences in Sydney, where it would control three stations.

However it appears that notice was submitted in January, almost three months before Falloon was named as the replacement for current Fairfax chairman Roger Corbett, who is stepping down in August.

Falloon was appointed to the board on March 26 and The Australian reports it is understood he has been in breach of the Broadcasting Services Act from March 31, when the merger was completed.

The new company controls licences for 2GB, 2UE and 2CH in Sydney, but was granted permission on the basis it sells 2CH within a year.

The Fairfax submission lists its directors as of January, while Falloon was appointed to the board in March

However a spokesperson from Fairfax told Mumbrella it did not believe Falloon had breached any rules as his “appointment was effective subject to regulatory requirements which we expect will come through in the next few days.”

A spokesperson from the ACMA declined to comment.

Miranda Ward