The Australian Competition and Consumer Commission will not oppose the acquisition of radio stations PMFM and 94.5FM in Perth by Austereo Pty Limited, ACCC Chairman, Professor Allan Fels, said today.
"The ACC has received court-enforceable undertakings from Austereo regarding the Triple M trademark and related matters," he said.
Austereo is a wholly owned subsidiary of Village Roadshow Limited. Triple M (Perth) is part of Austereo's Triple M network which broadcasts in most mainland capital cities. PMFM and 94.5FM are Perth's highest rating radio stations.
"To comply with the Broadcasting Services Act, and to address ACCC concerns, Austereo will sell its Perth Triple M station after it acquires PMFM and 94.5FM. The ACCC has received a further undertaking that prevents Austereo, while it owns both PMFM and 94.5FM, from having any involvement with other radio stations in Perth.
"Specifically, the undertaking prevents Austereo from:
- having any ongoing involvement in the day-to-day running of the station currently known as Triple M after it is sold;
- licensing the new owner and/or operator of the station currently known as Triple M or the owner and/or operator of any other radio station in Perth to use the Triple M call sign and/or trademark; and
- entering into any agreements with the new owner of the station currently known as Triple M to provide such services as sales representation, programming or promotion;
- acquiring an ownership interest in any further radio stations in Perth unless seven days notice is given to the ACCC.
"In addition, Austereo must require that the new owner of Triple M change the call sign as a condition of the sale of the station. If Austereo wishes to continue its Triple M presence in Perth, it has the option of converting one of the two stations it is acquiring into a Triple M station.
"Subject to these conditions, the ACCC decided that Austereo's ownership of two out of the five Perth commercial radio stations will not substantially lessen competition in the market for radio advertising in Perth.
"In recent years, radio stations appear to have shifted from being primarily small businesses to being lucrative additions to integrated media and entertainment companies. The ACCC is attempting to ensure that advertisers, and hence the consumers of products advertised on radio, will not pay higher prices as a result," Professor Fels said.
Further information Professor Allan Fels, Chairman, (03) 9290 1812 or pager (016) 373 536 Ms Lin Enright, Director, Public Relations, (02) 6264 2808
For the information of the public, the ACCC maintains a register of undertakings given to it under Section 87B of the Trade Practices Act 1974. The register is available for inspection at the ACCCs office in Canberra.