The Australian Consumer and Competition Commission has spoken of its concern that pay-television operator Foxtel’s proposed acquisition of a minority stake in commercial broadcaster Ten could reduce competition in the domestic sports-rights market.
In June, Foxtel agreed a deal to acquire a 15-per-cent stake in Ten, and the regulator is expected to make a final decision on the proposed agreement on October 22.
However, the watchdog said in an initial statement that the two broadcasters could enter into “joint bids and other commercial arrangements for acquisition of sports rights, to the exclusion of other free-to-air networks.” This would boost Ten’s ability to acquire rights and would “increase the likelihood of more sport being shown exclusively on Foxtel”.
The regulator's chairman Rod Sims added: “Given the importance of sporting content to a broadcaster’s ability to compete strongly with other free-to-air networks, the ACCC is concerned that the advantage Ten would gain in acquiring sporting content may lead to a substantial lessening of competition in the free-to-air television market, or in the broader market for the supply of television viewing services.”