Telstra’s takeover bid of content aggregator Fetch TV has been approved by the ACCC.
Telstra will acquire 51.4 per cent of Media Innovations Holdings, the owner of Fetch TV.
The ACCC said its review focused on whether Telstra would have the ability and incentive to foreclose competing broadband retailer’s access to Fetch TV.
Telstra TV comes with its retail broadband services, while Fetch TV supplies set top-boxes to broadband retailers to supply as an add-on to broadband services.
“Our investigation found that entertainment offerings are one important way for broadband retailers to differentiate themselves from competitors,” ACCC Commissioner Liza Carver said.
“However, Fetch TV does not appear to be critical or a ‘must have’ aspect for Telstra’s retail broadband competitors to offer consumers a competitive retail broadband service.
“With this in mind, it is unlikely the proposed transaction would lead to Telstra foreclosing rival broadband providers.”
Carver points out that less than 10 per cent of retail broadband customers in Australia acquire Fetch TV services from their retailer, and pointed out the many ways to stream content ” without the use of a set-top-box.”
The ACCC also examined the overlap between Telstra TV, Fetch TV, and Foxtel, which is 35 per cent. owned by Telstra.
“While Telstra is the largest broadband retailer in Australia, we have carefully examined the facts and circumstances of this acquisition as well as changes in the way consumers access entertainment.
“We have concluded that this acquisition is unlikely to result in a substantial lessening of competition,” Carver concluded.