The Australian Competition and Consumer Commission is currently inquiring into two recent long-term exclusive program supply deals entered into by the Seven and Nine networks respectively.
ACCC Chairman, Professor Allan Fels, said today that the deals raised concerns about the likelihood of competition from new entrants in the commercial television licence areas of Darwin and regional Western Australia, in each of which there is currently only one licensed commercial television operator.
"The Australian Broadcasting Authority over the last year or more has been developing plans and proposals for a second commercial television operator in those markets", he said. "However, the recent signing of these two exclusive program supply deals by Seven and Nine may prevent or hinder the potential for a new competitor in these licence areas, thus preserving the current sole status of the incumbents.
"The ACCC has been advised that a number of parties who had expressed an interest in entering these markets were now no longer interested," he said
The two deals in question are:
- an agreement Nine Network Australia Pty Limited has signed with Golden West Network Pty Limited, a company which operates the sole commercial television station in regional WA and which is associated with the Chairman of Seven Network Limited; and
- an agreement Seven Network Limited has signed with Territory Television Pty Limited, a Nine Network subsidiary which operates the sole commercial television station in Darwin.
The ACCC is also inquiring into other matters which may or may not be related to the signing of the program supply deals, in particular the close timing of their signature.
Professor Fels said the Commission has decided to announce today the fact of its inquiries in view of a Seven shareholder's meeting which has been scheduled for Thursday 4 April to vote on the acquisition of Golden West Network by Seven.
He stressed, however, that whether or not the Commission takes any action is a matter which only will be decided following a full inquiry into the matter. The Commission cannot at this stage of the inquiry give an indication as to its likely outcome.