Diversity in the media sector was both a social and an economic issue, ACCC Chairman, Mr Graeme Samuel, said today*.
"The ACCC cannot guarantee diversity into the future – but lest this is interpreted as saying the ACCC cannot deal with reductions in diversity flowing from media mergers, let me make it clear exactly what our position is.
"Diversity needs to be seen from three perspectives – content producers, advertisers and consumers. A lot of the current debate about diversity is flowing from content producers who have their own views as to the desirability of the diversity of opinion from their viewpoint as content producers.
"Diversity is about providing a choice of content, views and style.
"Competition motivates and forces suppliers of content to serve the diverse needs and demands of advertisers and consumers in both content (entertainment, news, information and opinion) and the methods of distribution and receipt of the content by consumers", he said.
"The ACCC needs to assess the likelihood of competition being sustained to provide consumers with choice. Consequently, while the ACCC will have regard to diverse choices potentially available through the development of new technology and sources, it cannot reach its conclusions based on hypothetical speculation – it needs to focus on outcomes that have a real chance.
"The ACCC is not the diversity police", he said. "A reduction in diversity could occur by the unilateral action of an existing media proprietor choosing to reduce diversity of opinion through its existing media outlets – particularly if that proprietor has substantial market power.
"But in a merger context, if a lessening of diversity brings about a lessening of competition, the ACCC will take this into account as part of its competition assessment".
Mr Samuel also addressed calls within the telecommunications sector for 'regulatory certainty' for new infrastructure investments.
"The ACCC has consistently made the point that there are mechanisms under the Trade Practices Act to achieve regulatory certainty after a full public inquiry.
"An exemption from access obligation is able to be obtained", he said. "Undertakings can be offered that propose the terms and conditions on which a carrier will offer the market access to a service.
"Parties need not wait for a declaration inquiry. The Act provides for these mechanisms to be submitted to the ACCC at any time".