NZ merger partners add extra submission

Aug 07, 2016 at 09:03 pm by Staff


While Australia's ACCC takes more time to consider the merger of two Perth publishing units, fears their merger might stumble has prompted a new submission by New Zealand's largest publishers.

NZME and Fairfax Media New Zealand claim a lack of submissions from advertisers and suppliers to the New Zealand Commerce Commission strengthens their case for a merger. In a statement to the commission, they reject concerns expressed in a total 50 submissions by journalists, academics and rivals regarding the potential impact on competition and independence, and argue feedback to the commission was very little given the profile of the proposed transaction.

"In traditional competition analysis, if competitors are opposing, it is often an indicator that the merger will be pro-competitive, as the merged entity is potentially expected to provide a better offering to customers (in this case, consumers and advertisers)," the publishers said in the submission.

The assertion the merger would create a monopoly was not supported by analysis of the number or nature of competitors.

"Many take a subjective, and arguably paternalistic (as opposed to consumer-driven) view of what is a "valuable" news/information service," the submission said.

"The objectors complain the merged entity will produce less of what they want to see news/information services delivering. The commission, which is interested in evidence-based analysis and decision-making, should treat those views with considerable scepticism."

There was a low barrier to entry for online and local print publishing, and news media already competed with broadcasters' online offerings in the production of national news.

"In light of the lack of submissions by suppliers or customers - on either side of the two-sided market . . . the commission should find that a clearance is appropriate."

The NZCC will rule on August 22.

Fairfax interests in New Zealand include nine daily and three weekly newspapers, 61 community publications, ten magazines and six websites, while those of NZME include eight daily and two weekly newspapers, 24 community publications, six magazines, ten radio stations and 38 websites.

Sections: Newsmedia industry

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