The proposed merger between NZME and Fairfax Media NZ has been put on hold over concerns that it could to increase prices to advertisers and consumers.
The Commerce Commission of New Zealand, which was scheduled to hand down its decision this week, now says it needs more time to assess the impact on both news content and the advertising market.
In a statement, the regulator said it would now release a draft determination in November and would make its final decision "on or before 15 March 2017."
The proposed merger is complex and involves two-sided markets – advertisers on one side and consumers (readers) on the other. The Commission is continuing to assess the effects of the proposed merger on areas such as the provision of national, regional and local news content and information, including the impact on the quality, accuracy and range of the news media in New Zealand. In addition, the Commission is assessing whether the proposed merger would enable the parties to increase prices to advertisers and consumers.
As part of the standard authorisation process the Commission intends to release a Draft Determination by early November. This will set out the Commission’s preliminary view on whether the proposed merger would be likely to result in a substantial lessening of competition as well as balancing the public benefits and detriments that it may bring about. Following the release of the Draft Determination, the Commission will seek further submissions from interested parties.
The decision-making timeframe allows for a public conference to be held in December should it be needed. A conference would be an opportunity for the Commission to test the views of NZME and Fairfax and interested parties on the issues raised in the Draft Determination. The Commission would then consider all submissions and publish its final decision on or before 15 March 2017.
The Commission cannot comment further on the application at this time.
Fairfax operates the New Zealand’s largest print media network, featuring nine daily and three weekly newspapers, 61 community publications, 10 magazine titles and six websites, including stuff.co.nz. It also has a minority shareholding in social media site, Neighbourly.
NZME owns eight daily and two weekly newspapers, 24 community publications, six magazine titles, 10 radio stations and 38 print and radio-related websites, including nzherald.co.nz, as well as a number of individual sites including Grabone, Shop Green and Adhub.