* ACCC imposes conditions to prevent Foxtel exclusive
internet TV rights
* ACCC says Telstra will have greater power in regional
areas
* Last major hurdle after 11-month battle
MELBOURNE, April 10 (Reuters) – Australia’s largest pay-TV
firm Foxtel extended its dominance on Tuesday when the
competition watchdog cleared its $2 billion takeover of smaller
regional rival Austar United Communications, nearly a
year after the deal was first proposed.
The Australian Competition and Consumer Commission (ACCC)
had voiced concerns the merger would destroy pay-TV competition
by merging the two main providers, Austar and Foxtel, which is
owned by Telstra Corp, Rupert Murdoch’s News Corp
and James Packer’s Consolidated Media Holdings
.
The commission said in a statement it imposed several
conditions on the takeover, adding the deal would give largest
shareholder Telstra greater market power in regional areas.
The conditions include that Foxtel would be prevented from
buying exclusive internet TV rights for a range of television
and movie content, including Nickelodeon and National Geographic
channels.
“By reducing content exclusivity, the undertakings will
lower barriers to entry and promote new and effective
competition in metropolitan and regional telecommunications and
subscription television markets,” ACCC Chairman Rod Sims said in
a statement.
The conditions also prevent Foxtel from acquiring exclusive
mobile rights to specified content where competitors also want
to deliver the programming across mobile devices.
Foxtel had promised not to enter into any exclusive content
agreements to buy internet TV rights, leaving the door open to
more competition through online TV.
Investors have been expecting the deal to win clearance,
with Austar shares last trading at A$1.48, just below the A$1.52
per share offer price made in May last year. The watchdog issued
its first comments on the deal last July.
Austar shareholders voted overwhelmingly last month to
approve the deal and the ACCC nod was the last major hurdle for
the deal.
The final step will be a Federal Court hearing scheduled for
Friday.
