The Australian Competition and Consumer Commission has concluded that the long term exclusive program supply deal between Seven Network Ltd and Territory Television Pty Ltd is likely to breach section 47 of the Trade Practices Act.
"This section prohibits anti-competitive exclusive dealing," ACCC Chairman, Professor Allan Fels, said today.
"Territory Television, a Nine Network subsidiary, operates the sole commercial free-to-air television licence in Darwin. After extensive inquiries, the ACCC has come to the view that the deal is likely to have the purpose and effect of substantially preventing or hindering the emergence of a new competitor in the Darwin market."
Television broadcasters must be licensed by the Australian Broadcasting Authority before they can enter a market. As part of planning process, the ABA has received expressions of interest in providing additional services in Darwin by a number of parties.
"The ACCC has been told by some of these parties who had expressed interest in the second commercial licence in Darwin that they were not prepared to pursue their interest while the exclusive program supply deal was in place."
The Commission is continuing its inquiries into two related matters:
- an exclusive program supply agreement between Nine Network Australia and the Golden West Network, and
- the close timing of the signing of the two exclusive program supply agreements in relation to regional Western Australia and Darwin respectively.