Thursday, October 12, 2006
ACCC can block media mergers
THE competition watchdog said today it could still block mergers between media companies even if they met tests under proposed media ownership rules.
The controversial bills amending media ownership laws were passed by the Senate yesterday.
Australian Competition and Consumer Commission (ACCC) chairman Graeme Samuel said the regulator could block the mergers under the Trade Practices Act (TPA).
"There are two or three safeguards against a concentration of diversity that have been built into these laws, two of which are new; that's the five/four law and the two-out-of-three law," Mr Samuel told the National Commercial Radio Conference in Sydney today.
"One that has been there for 32 years is the Section 50 of the Trade Practices Act that says that mergers should not be allowed to proceed if it is likely to lead to a substantial lessening of competition.
The controversial bills amending media ownership laws were passed by the Senate yesterday.
Australian Competition and Consumer Commission (ACCC) chairman Graeme Samuel said the regulator could block the mergers under the Trade Practices Act (TPA).
"There are two or three safeguards against a concentration of diversity that have been built into these laws, two of which are new; that's the five/four law and the two-out-of-three law," Mr Samuel told the National Commercial Radio Conference in Sydney today.
"One that has been there for 32 years is the Section 50 of the Trade Practices Act that says that mergers should not be allowed to proceed if it is likely to lead to a substantial lessening of competition.
