ACP Magazines Ltd - proposed acquisition of 'Recipes+' magazine from Knockout Media Pty Ltd

Summary

ACP Magazines Limited proposed to acquire the 'Recipes+' magazine from Knockout Media Pty Ltd.

Market definition

The ACCC considered it unnecessary to form a definitive view regarding the relevant market definition. However, the ACCC considered the proposed acquisition in the context of markets for:
- the supply of advertising space to advertisers in food focused magazines; and
- the supply of food focused magazines to consumers.

Competition analysis

The ACCC concluded that the proposed acquisition was unlikely to substantially lessen competition irrespective of the market definition adopted. Factors informing this decision included:
- ACP's food focused magazines are not the closest competitors of 'Recipes+';
- other strong competitors will remain in the market;
- other publishers that publish magazines that are not food focused but contain some food content may have the ability to adapt their content with relative ease to allow new entry and constrain any anti-competitive effects; and
- key characteristics of easily coordinated markets are absent as the product offerings are differentiated, and the companies have asymmetrical market shares and cost structures.