FAIRFAX MEDIA FORCED TO RESTORE THE VIABILITY OF TWO COMMUNITY NEWSPAPERS
January 7th 2008 09:18
The Australian Competition and Consumer Commission will protect the viability of two community newspapers that Fairfax Media sold following its merger with Rural Press last year, after expressing concerns that Fairfax had breached an undertaking to sell them as viable concerns.
The ACCC's acting chair, Louise Sylvan, formerly of Choice magazine, told The Australian last night that actions Fairfax had taken before the sale of the two newspapers in Newcastle and the Hunter Valley "appeared to go against the undertaking that the papers would be sold as viable, competitive entities".
When Fairfax and Rural Press merged, Fairfax signed an agreement with the ACCC to sell The Newcastle and Lake Macquarie Post and The Hunter Post, because these free newspapers overlapped with Rural Press's The Newcastle and Lake Macquarie Star and The Lower Hunter Star.
Fairfax ultimately sold the two Post newspapers to Newcastle’s Camillaro Pty Ltd in November last year.
But Louise Sylvan said that just before the sale was completed, the two Post newspapers were published without their real estate and entertainment supplement, and the supplements instead reappeared in one edition of the two Star newspapers retained by the enlarged Fairfax.
The real estate and entertainment supplements were "key advertising areas" of the two Post newspapers.
Business Spectator reported that, “The ACCC raised its concerns with Fairfax, which has now agreed to take steps to restore the Post(s) to its pre-sale position."
- From MediaBlab
The ACCC's acting chair, Louise Sylvan, formerly of Choice magazine, told The Australian last night that actions Fairfax had taken before the sale of the two newspapers in Newcastle and the Hunter Valley "appeared to go against the undertaking that the papers would be sold as viable, competitive entities".
Fairfax ultimately sold the two Post newspapers to Newcastle’s Camillaro Pty Ltd in November last year.
But Louise Sylvan said that just before the sale was completed, the two Post newspapers were published without their real estate and entertainment supplement, and the supplements instead reappeared in one edition of the two Star newspapers retained by the enlarged Fairfax.
The real estate and entertainment supplements were "key advertising areas" of the two Post newspapers.
Business Spectator reported that, “The ACCC raised its concerns with Fairfax, which has now agreed to take steps to restore the Post(s) to its pre-sale position."
- From MediaBlab
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