Australia Government Entitled To Intervene In Media Sector -Review
April 30 2012 - 2:39AM
Dow Jones News
Australia's government is entitled to intervene in the country's
media industry to prevent concentrated ownership and to enforce
standards, according to recommendations from an official enquiry
into the sector.
"A concentration of services in the hands of a small number of
operators can hinder the free flow of news, commentary and debate
in a democratic society," the 177 page report by the Convergence
Review Committee said.
"Media ownership and control rules are vital to ensure that a
diversity of news and commentary is maintained," it said.
The review recommends that a new statutory regulator be set up
to oversee ownership rules with the power to block proposed
transactions not deemed to be in the public interest. That
regulator should also ensure local content quotas are met and an
industry-led body should also be established to oversee journalism
standards for news and commentary, it said.
"The communications regulator should also have flexible powers
to make rules on content-related competition issues. Content has
the potential to be the new competition bottleneck in the digital
economy, and the new regulator must have the necessary powers to
promote fair and effective competition in content markets," the
report said.
A rapidly changing media environment and consolidation in the
sector prompted the government to set up the Convergence Review in
early 2011 to examine the operation of media and communications
regulation. Its findings will now be considered by communications
minister Stephen Conroy.
"I expect the recommendations will generate robust public
debate," said Conroy.
Australia's media sector is dominated by a handful of large
companies including Fairfax Media Ltd. (FXJ.AU), Ten Network
Holdings Ltd. (TEN.AU) and Nine Entertainment Co. and News Corp.'s
(NWS) Australia unit, News Ltd.
News Corp. owns Dow Jones & Co., publisher of this newswire
and The Wall Street Journal. In Australia it owns The Daily
Telegraph and The Australian newspapers among other publications
and media properties.
The review also wants the government to adopt a market-based
approach to pricing broadcast spectrum, similar to practises
already in use for other radio communications spectrum.
Adopting measures to protect children from inappropriate content
is also among the report's findings.
-By Enda Curran, Dow Jones Newswires; 61-2-8272-4687;
enda.curran@dowjones.com
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