ACCC approves Foxtel-Austar deal, with limits on content exclusivity

The Australian Competition and Consumer Commission has decided not to oppose Foxtel’s proposed acquisition of Austar. Foxtel has pledged undertakings that the ACCC has accepted. The undertakings prevent Foxtel from acquiring exclusive internet protocol television (IPTV) rights for a range of content linear channels supplied by independent content suppliers and certain movie linear channels. The channels that Foxtel cannot obtain exclusive IPTV rights to include CNN, Discovery Channel, ESPN, Eurosport, National Geographic, Nickelodeon, and MTV, among others. The undertakings also block Foxtel from acquiring exclusive mobile rights to the content, when rivals are seeking the same rights in combination with IPTV rights. In addition, Foxtel will undertake to provide greater access to linear channels distributed by independent content suppliers, as well as access to Foxten and Austar subscribers for content suppliers.

The undertakings have resolved the ACCC’s concerns with the Foxtel-Austar deal’s possible anticompetitive effects in the national market for the retail supply of subscription television services, especially with regard to IPTV. The ACCC also raised issues in regional markets for fixed broadband and telephony services.

Full content: ACCC Press Release

Related content: The Australian Approach to Competition Law Compliance Programs (Bill Dee, Compliance and Complaints Advisory Services)