Australian competition regulator the ACCC has focussed on local and Brisbane suburban competition in its decision to allow News Corp to take over APN's regional newspapers in the country.

In a long statement issued today ACCC chairman Rod Sims details the research it undertook - including contacting more than 600 small businesses and advertising agencies - in reaching its decision. It said its focus was on how APN ARM's paid regional newspapers and News' Courier Mail compete for readers, and the extent of competition between overlapping News and ARM community newspapers in southeast Queensland.

"The ACCC reviewed the acquisition very closely, as News and ARM are the two largest newspaper publishers in Queensland," says Sims. "However, feedback from readers raised very few concerns and suggested that there is not close competition between the paid daily Queensland papers published by News and ARM.

"ARM's paid daily regional newspapers focus mostly on regional and local news and there is limited overlap with the Courier Mail which focuses on greater-Brisbane, state, and national news. Furthermore, readers are increasingly reading online sources of news, where there are alternatives to News and ARM."

Sims says the ACCC was pro-active in contacting advertisers and in raising awareness of the transaction with consumers.

Readers in areas such as Caboolture/Bribie Island, south west Brisbane, Brisbane northern bayside, Logan, Tweed Heads, and the southern Gold Coast, where News and APN currently compete "are likely to face reduced choice," it says.

"However, the ACCC concluded that, overall, a sufficient range of local news choices and advertising options would remain available in these areas, with Fairfax and independent local newspapers in some local areas, competing online options, as well as local radio news.

"Although some concerns were raised by small businesses and ad agencies in these local areas, most acknowledged that print advertising was of declining importance and identified other advertising options if News attempted to increase rates.

"Declining readership and reduced advertising revenues for hard-copy publications were important factors in the ACCC's assessment, as it was with the investigation of Seven West Media's acquisition of the (Perth) Sunday Times. Advertisers and readers are increasingly turning to other sources of news and advertising opportunities, particularly digital, which is having a significant impact on the print industry."

The statement makes no reference to the impact of the takeover on competitive balance in the industry, where Fairfax Media - which owns two suburban Brisbane/Gold Coast titles - will be the only other remaining major player on Australia's east coast.

In a statement this morning, News Corp Australasia executive chairman Michael Miller welcomes the decision to buy the business he once ran, and says he appreciates the "significant value" they will bring to News. "They share many of the same values which News cherishes."

In 2006, the ACCC did not oppose News Limited's acquisition of the (now defunct) Noosa Journal because of the existence of APN's Noosa News and because it didn't already own free community newspapers in Noosa, deciding that "there were no competition concerns".

Pictured: Brisbane's bayside, photo Visit Brisbane