A Memorandum of Understanding that will allow Tabcorp, Sky and TVN* to share thoroughbred racing content has been granted final authorisation** by the Australian Competition and Consumer Commission.
"The ACCC is satisfied that the MOU is likely to result in a benefit to the public," ACCC Chairman, Mr Graeme Samuel, said.
"In particular, the ACCC considers that the MOU will bring about an end to the split vision dispute which has led to a decrease in wagering revenue, punter confusion, pubs and clubs needing two channels to access all thoroughbred racing vision and a decrease in funding to the racing industry.
"The ACCC accepts that the MOU will also result in improved output, quality and innovation of the Sky and TVN Channels.
"The ACCC considers that the MOU will have a competitive impact on the incentives of Sky and TVN to bid for future broadcasting rights from thoroughbred racing clubs. However, the ACCC acknowledges that sufficient commercial incentives exist which may counter the competitive impact resulting from content sharing under the MOU.
"The ACCC raised concerns about the potential for Tabcorp to distribute the Sky and TVN Channels as a bundled product to pubs and clubs. The ACCC has imposed a condition on the authorisation to address these concerns."
Mr Samuel said the MOU was unlikely to raise significant competition concerns in the distribution of race broadcasting services to television providers or the supply of wagering services to other wagering providers.
The ACCC has granted authorisation for the term of the MOU, which is until 31 December 2012.
More information regarding the application and a copy of the determination will be available from the link below by close of business 4 July 2007.