Commission decides not to intervene in Sky acquisition
Published22 Nov 1996
The Commerce Commission has said today that, on the information currently available, it has no plans to intervene in the proposal that INL and associated companies acquire a majority shareholding in Sky Network Television Ltd.
Commission Chairman Dr Alan Bollard said that the Commerce Act prohibits business acquisitions which result in dominance being acquired or strengthened in any market. It also gives the Commission power to investigate acquisitions which it is concerned about and to take court action against them if necessary at a future date.
"We have investigated the proposal and decided that unless it changes substantially we will take no action against it," Dr Bollard said.
"The parties have not applied for a clearance or authorisation, and this decision does not give the legal protection that would come from a clearance or authorisation. Other parties can challenge the acquisition if they wish."
In its investigation, the Commission gave particular consideration to the links that the proposal would create between Sky and News Corp.
News Corp owns 49.5 percent of INL and rights to televise various sports events, including New Zealand rugby. It also has major interests in film studios and television programme providers.
The Commission concluded that the links would not prevent other television broadcasters from obtaining competing programmes, and the television broadcasting market in New Zealand would remain competitive.
The Commission maintained its previous views that free-to-air and pay television operate in the same market, and that print media are in a separate market to television.
Dr Bollard said that the Commission's conclusions related only to the proposal for INL and associated companies to acquire a shareholding in Sky. If any other party involved wished to acquire shares in Sky, then the Commission would consider that to be a separate matter and would look at that proposal also.
