ThoroughVisioN and Sky Group - proposed joint venture
Type of assessment
Joint Venture Arrangement
Reference
24637
Acquirer(s)
Sky Channel Pty Ltd Sky Channel Marketing Pty Ltd
Target(s)
ThoroughVisioN Pty Ltd
Industry
Racing broadcasting
Summary
Sky Channel and TVN proposed to enter into joint venture arrangements to share thoroughbred racing vision.
Outcome of assessment
Not approved
Total review days *
42
Commenced public review
19th June 2006
Date completed
15th August 2006
Market definition
The key market in this matter was the acquisition of broadcast rights from thoroughbred racing clubs.
Competition analysis
The proposed arrangements were in the form of a joint venture, not a merger, and were assessed under section 45 of the Trade Practices Act, not section 50. Section 45 prohibits certain contracts or provisions of contracts that would have the effect, or likely effect, of substantially lessening competition in a market.
The proposed joint venture arrangements would have substantially lessened Sky's and TVN's incentives to bid against each other for the thoroughbred racing broadcast rights. Given that Sky and TVN were the only two acquirers of such rights in Australia, this was likely to result in a substantial lessening of competition in the relevant market. Other competition issues were also noted relating to some specific clauses of the arrangements.
Review timeline
Date
Event
19th June 2006
ACCC commenced market inquiries
14th July 2006
Deadline for submissions from market participants
15th August 2006
ACCC announced it would not approve the joint venture
* Total Review days = Total business days less public holidays and time during which the review was suspended.
