Foxtel who have had a 15 year monopoly in the pay TV market has hinted that they will take legal action against the Australian Competition and Consumer Commission if they the ACCC fail to approve their acquisition of regional pay TV operator Austar.
Foxtel who have had a 15 year monopoly in the pay TV market has hinted that they will take legal action against the Australian Competition and Consumer Commission if they the ACCC fail to approve their acquisition of regional pay TV operator Austar.
Insiders have told ChannelNews that the CEO of Foxtel Kim Williams is “seething” after the ACCC delivered an interim report that Foxtel’ s acquisition of regional pay-TV group Austar is anti-competitive.
The threat of legal action will not frighten the ACCC who believe that Foxtel who charge up to $132 a month for access to their services is trying to further expand their monopoly position by acquiring Austar.
Foxtel chief executive Kim Williams told the Australian newspaper whose owner News Corporation is a major shareholder in Foxtel that the statement of issues paper released by the commission on Friday — which delivers a potentially fatal blow to the deal — was short on fact and full of “bald assertions”.
Williams, who likes using media who have a shareholding in Foxtel to spruik his message told the Australian “What we have in the commission’s statement of issue is a recital of opinions which do not have recourse to any kind of evidence,” he said. “Parts of the commission are entitled to have their own personal opinions, but fortunately our legal system doesn’t operate that way.”
Dismissing the ACCC concerns, Foxtel CEO Kim Williams said it faced competition from commercial broadcasters, their digital channels and new IPTV players.
He said: “Foxtel remains confident that the proposed transaction does not substantially lessen competition in any market and Foxtel will respond to the ACCC as part of its ongoing process.
“The retail market is highly competitive. Foxtel faces vigorous competition from the reinvigorated commercial and national broadcasters and their digital multi-channels, new IPTV and on-line competitors such as streaming services over broadband networks (such as Fetch TV), ISPs that provide content themselves together with online movie rental and download services, and DVD rental and sales.
“Competition in this market will only further increase in the future with developments in technology and the rollout of the NBN.”
