Foxtel-Austar merger looks set for go ahead
Australia’s competition watchdog has signalled that it is set to approve the long delayed purchase of Austar by Foxtel.
The Australian Competition and Consumer Commission said today that it will undertake a rapid consultation with the market – with a deadline of submissions of March 20 – around undertakings given by Foxtel to help preserve competition in the market. The undertakings relate to making content available to competitors. According to the ACCC:
“According to the terms of the undertaking, FOXTEL will be prevented from entering into exclusive content agreements to acquire internet protocol television (IPTV) rights for a range of attractive content to allow that content to be made available to existing and future competitors of FOXTEL and Telstra. By reducing content exclusivity, the proposed undertaking aims to lower barriers to entry and promote new and effective competition in telecommunications and subscription television markets.”
The regulator added: “The ACCC expects that as telecommunications networks develop, the undertaking will create opportunities for new and existing competitors to develop differentiated and more affordable subscription television offerings. These differentiated products would be likely to improve competition in both subscription television and telecommunications markets as retailers increasingly seek to bundle IPTV services with other telecommunications products.”
The ACCC aims to give a final decision by March 29 – the day before Austar’s shareholders meet.
If the deal goes ahead, it would give the new entity around 2.4m subscribers.
Tim Burrowes founded Mumbrella in 2008. He worked on Mumbrella until 2021. At various points he was editor, content director and editor-at-large.
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