Illyria Nominees Pty Limited - proposed acquisition of a 50% interest in DMG Radio Australia Pty Ltd

Summary

Illyria intended to acquire a 50% interest in DMG Radio Australia Pty Ltd.

Market definition

The ACCC noted that there was direct overlap between Illyria's shareholding in Prime Television and Star FM, a radio station owned by DMG Radio in Gosford. The ACCC also noted that there was a possible indirect overlap between Illyria and the media interests owned by News Limited.

Consistent with the principles the ACCC set out in the Media Mergers paper in August 2006 and subsequent reviews of mergers in the media sector, the ACCC considered the direct and indirect overlaps of the proposed acquisition in relation to a single product class - the supply of advertising opportunities to advertisers.

For the purposes of its competition analysis the ACCC did not consider it necessary to form a definitive view regarding market definition.

Competition analysis

The ACCC formed the view that the proposed acquisition was unlikely to result in a substantial lessening of competition in the relevant markets. Factors informing this conclusion included:
- the existence of other competitors providing advertising opportunities on the same platform as that provided by Illyria / News Limited; and
- the existence of other competitors providing advertising opportunities on different platforms as those provided by Illyria / News Limited.