The Australian Competition and Consumer Commission will not oppose the proposed acquisition of the masthead of the Geelong Independent newspaper by Geelong Advertiser Limited.
"The acquisition leads to Geelong Advertiser Limited having high market shares in the Geelong region markets for the provision of newspaper advertising services and for the supply of regional newspapers", ACCC Chairman, Professor Allan Fels, said today. "However, barriers to entry in these markets were found to be relatively low and this is likely to operate as an effective competitive constraint on the merged entity, thereby thwarting any attempt to raise prices to consumers".
In particular, the ACCC noted there was evidence of recent new entry, and there is a genuine threat of a new entrant entering the market in the foreseeable future.
Geelong Advertiser Limited owns and publishes the Geelong Advertiser newspaper which is published six days per week. GA also owns and publishes The Echo and the Geelong News, which are free 'community' styled newspapers circulated in parts of the Geelong region on a weekly basis.
Geelong Independent Limited owns and publishes the Geelong Independent newspaper, which is delivered free on a weekly basis.
The ACCC has conducted extensive market inquiries into this proposed acquisition consulting with competitors, customers, advertisers, readers, community groups and other interested parties.
Professor Fels also noted that advertisers in the regional newspapers possess a degree of countervailing power which is likely to act as a further constraint on the merged firm.
On this basis, the ACCC believes that the proposed acquisition is unlikely to result in a substantial lessening of competition.