New Zealand's Commerce Commission has moved to the "public benefit" second stage of its consideration of the proposed Fairfax/NZME merger, putting off a decision until next March.
It is now scheduling a 'draft determination' by early November, followed by a possible public conference the following month.
The commission says it has agreed an extension with NZME and Fairfax on their application seeking authorisation to merge their New Zealand media operations and will now make its final decision by March 15 next year.
It says the proposed merger is "complex" - involving both advertisers and readers - and has attracted a large number of submissions from interested parties.
NZME and Fairfax lodged their application on May 27.
"The Commission is continuing to assess the effects of the proposed merger on areas such as the provision of national, regional and local news content and information, including the impact on the quality, accuracy and range of the news media in New Zealand," it says. "In addition, the Commission is assessing whether the proposed merger would enable the parties to increase prices to advertisers and consumers."
The Commission says it intends to release a draft determination "by early November", which will set out its preliminary view on whether the proposed merger would be likely to result in a substantial lessening of competition as well as balancing the public benefits and detriments that it may bring about. Following this, it will seek further submissions from interested parties.
"The decision-making timeframe allows for a public conference to be held in December should it be needed," a statement says. "A conference would be an opportunity for the Commission to test the views of NZME and Fairfax and interested parties on the issues raised in the Draft Determination.
"The Commission would then consider all submissions and publish its final decision on or before March 15."
It will not make any further comment. In background notes, it implies the merger has not cleared the first step of the two-step process - that the merger is not likely to substantially lessen competition. The second step then applies the "public benefit" test, balancing the public benefits and detriments likely result. A merger must be authorised if the commission is satisfied that it would result in "such a benefit to the public that it should be permitted".