Commission clears INL to acquire fishing publication
Published16 Jun 2000
The Commerce Commission today cleared Independent News Auckland Limited (INL) to acquire certain assets comprising the magazine New Zealand Fisherman.
INL publishes a range of newspaper and magazine titles, including New Zealand Fishing News and Boating New Zealand. Review Publishing Co Limited currently publishes New Zealand Fisherman, in addition to other magazine titles, including Sea Spray. The clearance only relates to assets associated with New Zealand Fisherman magazine.
Commission Chair John Belgrave said that the Commission was satisfied that the acquisition would be unlikely to result in any party acquiring or strengthening a dominant position in a market, if it were to proceed. The Commission identified two relevant markets to consideration of the proposal:
the national market for the provision of advertising services in the print medium in respect of recreational fishing and boating activities, and
the national market for the provision of news, information and entertainment services in the print medium in respect of recreational fishing and boating activities.
In both markets the Commission determined that a combined entity would have a market share outside the "safe harbours" published in the Commission's Business Acquisitions Guidelines. The safe harbours are:
40 percent market share, and
60 percent market share if at least one competitor has 15 percent or more of the market.
Notwithstanding this market share, the Commission found that effective competition was currently provided by a number of other publishers, providing both national and regional publications, and that this competition was likely to provide a competitive constraint if the acquisition were implemented. In addition, the Commission found low barriers to entry into the relevant markets, and low barriers associated with existing titles "re-positioning" themselves in order to introduce more fishing and boating related content.
Further, the Commission also found competitive constraints upon publishers from other advertising outlets, particularly from newspaper advertising, direct mail order, and increasing use of the Internet to promote products and services to consumers.
Public copies of the Commission's decision will soon be available from its website, www.comcom.govt.nz, and are available from reception at its Wellington office, Level 7 Landcorp House, 101 Lambton quay.
