The Australian Competition and Consumer Commission will not oppose Pacific Access’ proposed acquisition of the CitySearch online business, ACCC Chairman, Professor Allan Fels, said today.
Pacific Access Pty Ltd is a subsidiary of Telstra Corporation Limited. Pacific Access is a leading Australian information, advertising and directories business, providing print, voice and online products and services. CitySearch is a wholly owned subsidiary of John Fairfax Holdings Limited. CitySearch is the number two provider of print and online business directories, behind Yellow Pages.
The possible sale of CitySearch to Pacific Access was first announced in December last year, but has not yet been finalised. The deal with Pacific Access involves only the online business of CitySearch. Fairfax will continue to support CitySearch with business data and other content for three years, with CitySearch likely to pay Fairfax for content after that period.
"The ACCC conducted market inquiries into this proposed acquisition, consulting with customers, competitors and other interested parties.
"The primary issue of concern was in relation to the control Pacific Access would have over copyright of directories and the access to business specific data, with the subsequent ability to limit competitive conduct. The proposed acquisition does not, however, provide Pacific Access with exclusive rights to the intellectual property and business data currently held by Fairfax. Fairfax retains the right to licence, lease or sell the copyright and/or data to any interested party free of any restraint from Pacific Access.
"Some businesses did indicate a concern to the ACCC with respect to the decline in choice in printed directories. However, as the proposed acquisition relates to the online business of CitySearch only, it has no direct impact on printed directories.
"The ongoing availability of Fairfax business data and access to directory copyright held by Fairfax for any business seeking to enter the market, or to use the data to provide related services, satisfied the ACCC that the proposed acquisition was unlikely to substantially lessen competition".