- ThoroughVisioN Pty Ltd
SummarySky Channel and TVN proposed to enter into joint venture arrangements to share thoroughbred racing vision.
Market definitionThe key market in this matter was the acquisition of broadcast rights from thoroughbred racing clubs.
Competition analysisThe proposed arrangements were in the form of a joint venture, not a merger, and were assessed under section 45 of the Trade Practices Act, not section 50. Section 45 prohibits certain contracts or provisions of contracts that would have the effect, or likely effect, of substantially lessening competition in a market.
The proposed joint venture arrangements would have substantially lessened Sky's and TVN's incentives to bid against each other for the thoroughbred racing broadcast rights. Given that Sky and TVN were the only two acquirers of such rights in Australia, this was likely to result in a substantial lessening of competition in the relevant market. Other competition issues were also noted relating to some specific clauses of the arrangements.
|19/06/2006||ACCC commenced market inquiries|
|14/07/2006||Deadline for submissions from market participants|
|15/08/2006||ACCC announced it would not approve the joint venture|