The Australian Competition and Consumer Commission has accepted a court enforceable undertaking from OzTAM Pty Limited and its shareholders, Seven Network (Operations) Limited, Nine Network Australia Pty Ltd and Network Ten Pty Limited.
The undertaking addresses ACCC concerns that OzTAM's structure and operation had the potential to facilitate anti-competitive conduct in breach of the Trade Practices Act 1974.
In early 2009, the ACCC began an investigation of OzTAM's operations and, in particular, the circumstances surrounding the separate reporting of ratings data by OzTAM for Ten's high definition digital channel, ONE.
"The ACCC investigation revealed that the OzTAM arrangements could raise trade practices concerns," ACCC chairman Graeme Samuel said today. "Under the arrangements, an OzTAM nominee director representing the interests of a particular shareholder could affect the reporting and marketing of new digital channels by other free-to-air broadcasters by refusing consent to the separate reporting of ratings data for those new channels.
"According to the undertaking, OzTAM, Seven, Nine and Ten will implement a number of steps to address the ACCC's concerns," he said. "These include the appointment of an independent director and chair to the OzTAM board with casting vote powers on certain matters."
Seven, Nine and Ten will also ensure that OzTAM management is authorised to release and report on new digital channels upon request by any free-to-air broadcaster and certify compliance with technical specifications relating to ratings data without board or shareholders approval.
OzTAM and the shareholders will also ensure that competitively sensitive information is not shared between the OzTAM directors and shareholders and will procure regular trade practices law compliance training.
OzTAM is the official source of television audience measurement for the five city metropolitan areas and nationally for pay television. The media industry uses OzTAM's ratings data in program development, advertising planning and to assess networks/program performance. OzTAM is a joint venture between Seven, Nine and Ten. Under the existing arrangements, each of Seven, Nine and Ten appoints a nominee director to the OzTAM board of directors.