The Australian Competition and Consumer Commission will not oppose the proposed acquisition of the Federal Publishing Company (FPC) Community Newspaper Group by News Limited.
ACCC Chairman, Mr Graeme Samuel, said the proposed acquisition is unlikely to substantially lessen competition under section 50 of the Trade Practices Act 1974.
"Potential competition concerns arose in northern and inner western Sydney where FPC and News Ltd publish the major community newspapers.
"However, following extensive market inquiries, it became apparent that a range of advertising alternatives exist for advertisers in these community newspapers, although individual advertisers may have different ranges of alternatives.
"Overall, the ACCC was satisfied that sufficient advertising alternatives existed in this case to provide a competitive constraint to News Limited," Mr Samuel said.
In December 2006, the ACCC published a Statement of Issues focusing on potential competition concerns in northern and inner west Sydney.
The ACCC will issue a Public Competition Assessment on its decision in due course.