The Australian Competition and Consumer Commission has made a submission to the inquiry into broadcasting currently being conducted by the Productivity Commission.
The inquiry stems from the Government's commitment under the Competition Principles Agreement to review legislation for its anti-competitive effects. The Productivity Commission has been asked to have due regard to technological convergence and the impact it may have on broadcasting markets.
In its submission, the ACCC canvasses a number of options in terms of their effect on improving competition and efficiency in broadcasting. The options range from maintenance of the status quo under the Broadcasting Services Act through to applying the Trade Practices Act with a new public interest test in respect of media acquisitions.
"The 'pros and cons' of each option are canvassed but the ACCC expresses no views on a preferred option," ACCC Chairman, Professor Allan Fels, said today.
"However, the ACCC is of the view that the industry should not in any way be exempted from the application of the Trade Practices Act. It should apply to broadcasting equally as it applies to other industries, reflecting the fundamental principle embodied in the Competition Principles Agreement of universal and uniformly applied rules of market conduct".
Technical convergence through digitalisation was creating many new competitive dynamics in broadcasting as well as other industries such as telecommunications and the print media, he said.
"Digitalisation and the trend to full service networks providing bundles of distinct services are likely to provide significant economies of scale and scope and to increase opportunities for new entry," he said.
"For the benefits of digitalisation to be fully realised, access to digital networks is shaping as a potentially major issue for content service providers.
"In certain circumstances, access to the content itself has important competitive consequences for infrastructure competition and the range of services available in Australia, particularly regional Australia," he said.
"In the ACCC's view, convergence requires the Productivity Commission to look beyond the narrow range of broadcasting legislation referred to it for inquiry".
The inquiry stems from the Government's commitment under the Competition Principles Agreement to review legislation for its anti-competitive effects. The Productivity Commission has been asked to have due regard to technological convergence and the impact it may have on broadcasting markets.
In its submission, the ACCC canvasses a number of options in terms of their effect on improving competition and efficiency in broadcasting. The options range from maintenance of the status quo under the Broadcasting Services Act through to applying the Trade Practices Act with a new public interest test in respect of media acquisitions.
"The 'pros and cons' of each option are canvassed but the ACCC expresses no views on a preferred option," ACCC Chairman, Professor Allan Fels, said today.
"However, the ACCC is of the view that the industry should not in any way be exempted from the application of the Trade Practices Act. It should apply to broadcasting equally as it applies to other industries, reflecting the fundamental principle embodied in the Competition Principles Agreement of universal and uniformly applied rules of market conduct".
Technical convergence through digitalisation was creating many new competitive dynamics in broadcasting as well as other industries such as telecommunications and the print media, he said.
"Digitalisation and the trend to full service networks providing bundles of distinct services are likely to provide significant economies of scale and scope and to increase opportunities for new entry," he said.
"For the benefits of digitalisation to be fully realised, access to digital networks is shaping as a potentially major issue for content service providers.
"In certain circumstances, access to the content itself has important competitive consequences for infrastructure competition and the range of services available in Australia, particularly regional Australia," he said.
"In the ACCC's view, convergence requires the Productivity Commission to look beyond the narrow range of broadcasting legislation referred to it for inquiry".