If we’re lucky, future historians will look back on this time as a turning point…
Scandal stricken News Corp suffered a fresh setback today when Australian Competition Commission said that its $2.7 billion takeover bid of Austar raised “significant” monopoly issues and delayed decision on it till September.
The takeover bid by Foxtel, part owned by Murdoch’s News Corp would have given the company an almost undisputed sway in pay TV operations in Australia.
The delay in takeover bid was a second setback to Murdoch’s News Corp within weeks as the company had to abandon its plans to take full control of the the money spinner London based Satellite Broadcaster, BSkyB.
The Australian Competition Commission ruled that the merger of Foxtel and Austar, its major rival in Australia was likely to lead to “substantial lessening of competition in the pay TV market”.
“The proposed merger would therefore effectively create a monopoly subscription television provider across Australia”, ‘Sydney Morning Herald’ reported quoting a statement issued by the Commission.
We’ll see in September if the Australians can resist their multinational native son.