The government’s media reforms commenced on 4 April 2007. The reforms include a Digital Action Plan, relaxation of laws dealing with cross-media transactions, and removal of specific newspaper and television foreign ownership rules.
The reforms have been widely touted as paving the way for significant merger activity and possibly for further concentration in the media industry.
Senate concerns relating to diversity had led to modifications to the initial bill.
If the predicted wave of merger activity eventuates, the Australian Competition and Consumer Commission’s (ACCC’s) paper on media mergers issued on 9 August 2006 will be put to the test (see ACCC paper on media mergers).
However, Minister for Communications, Information Technology and the Arts, Senator Helen Coonan recently stated that the reforms will ‘encourage greater competition and allow media companies to achieve economies of scale and scope, while maintaining the diversity of Australia’s media landscape’ (The Age, 30 March 2007).
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For information regarding possible implications for your business, contact a member of the Competition & Market Regulation team.