The Australian Competition and Consumer Commission (ACCC) has raised concerns about speculation Telstra may further expand its 50% stake in Foxtel.
The market has been rife with speculation that James Packer will sell his stake in Consolidated Media to fund his gaming interests. The company owns 25% of Foxtel, and many have suggested Telstra will buy into Consolidated Media to increase its stake in Foxtel.
ACCC chairman Rod Sims told The Australian Financial Review the regulator may seek further powers if concerns over marketplace competition arose.
This follows Telstra chief executive David Thodey's recent statement that acquiring part ownership of Foxtel was “the best thing we've ever done” and expressed an interest in expanding Telstra's stake in the future.
“We would look extremely closely at any proposal by Telstra to increase its shareholding in Foxtel to anything that gives it an outright majority interest,” Sims told the AFR. “As the telecommunications market increasingly sells bundled products, not just voice and data but also TV and mobiles ... [Telstra] getting an even stronger grip on the content would give [the ACCC] concerns.”
These powers would include the ability to offer access to sporting content to rival pay television providers.
Concerns about Foxtel holding a monopoly over pay TV content led to more than a year of ACCC deliberation over its recent acquisition of Austar. The merger was approved after Foxtel made concessions, including agreeing to not seek exclusive rights to certain channels and programming.
News Corporation and Seven Group Holdings may also be interested in purchasing a 50% stake in Consolidated Media Holdings, which James Packer may sell to finance a move into Sydney's casinos. Consolidated Media and News own 25% of Foxtel each, while Seven owns 24% of Consolidated Media.
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