Agreement reached in relation to ACCC's claims in its Federal Court action
Following discussions today between representatives of the Australian Competition and Consumer Commission and the Nine Network it has been agreed that:
(a) the Nine Network and its subsidiary Territory Television (NTD8) will terminate the exclusive program supply agreement with the Seven Network in relation to the Darwin market. The Nine Network has informed the ACCC that the agreement has now been terminated.
(b) the Nine Network and Territory Television will undertake to the Court not to enter into any like agreement in substance or effect for the acquisition of Seven Network programming for broadcast in the Darwin market. This will assist the ACCC's objective to substantially increase the programming options for a new entrant in the Darwin market.
(c) the Nine Network, Territory Television and Mr Nicholas Falloon (a director of Nine) will not contest the ACCC's claims in the proceedings filed on 24 October and will submit to any orders the Federal Court may make in respect of those proceedings on the basis that:
1) The ACCC will withdraw its claims for declarations against the Nine Network, Territory Television and Mr Falloon in respect of the alleged contraventions of the Trade Practices Act;
2) The ACCC will withdraw its claims for pecuniary penalties against the Nine Network, Territory Television and Mr Falloon in respect of the alleged contraventions;
3) The ACCC will maintain its claims for injunctions;
4) If Golden West Network consents, or the ACCC succeeds in its claims in respect of the exclusive program supply agreement for regional Western Australia, the Nine Network will give undertakings to the Court that it terminate the exclusive program supply agreement with Golden West Network and it will offer to supply programs to the regional Western Australian market on reasonable commercial terms; and
5) The Nine Network will make a contribution towards the ACCC's costs to date in the Court proceedings.
