Ownership and control of the media in Australia is regulated by several acts. Commercial television, commercial radio, and newspapers are the main focus of media ownership issues. Different rules apply to the three categories.
In broad terms, there are three areas of legislation which cover media ownership:
- the Broadcasting Services Act 1992, which covers ownership and control of licensed commercial, community and subscription broadcasting and narrowcasting services;
- the Foreign Acquisitions and Takeovers Act 1975, which covers the acquisition of Australian property and businesses by foreigners;
- the Trade Practices Act 1974, which covers the activities of Australian corporations to prevent anti-competitive conduct and to ensure that the interests and welfare of consumers are adequately protected.
These acts impose different kinds of limits on media ownership.
Limits on ownership within a local area: the Trade Practices Act prevents mergers which are likely to substantially lessen competition (if there is otherwise no significant public benefit) and stops misuse of market power. The Broadcasting Services Act contains a "one to a market rule" for commercial television and a "two to market" rule for commercial radio. These rules stop the same person controlling more than one commercial TV broadcasting licence or more than two commercial radio licences in the same licence area (eg Melbourne). The Act also stops the same person controlling a TV broadcasting licence and commercial radio licence or major newspaper in the same area (the cross-media rules).
Limits on ownership within a local area: the Trade Practices Act prevents mergers which are likely to substantially lessen competition (if there is otherwise no significant public benefit) and stops misuse of market power. The Broadcasting Services Act contains a "one to a market rule" for commercial television and a "two to market" rule for commercial radio. These rules stop the same person controlling more than one commercial TV broadcasting licence or more than two commercial radio licences in the same licence area (eg Melbourne). The Act also stops the same person controlling a TV broadcasting licence and commercial radio licence or major newspaper in the same area (the cross-media rules).
Foreign ownership limits: the Treasurer has the power to stop substantial acquisitions of Australian assets which are contrary to the national interest. It is government policy to allow single foreign shareholders to only hold up to 25% of the shares in a mass circulation newspaper, with a maximum of 30% for all foreign interests. Foreign proposals to establish ethnic newspapers in Australia will not generally be approved without substantial local ethnic community involvement and local control of editorial policy. Under the Broadcasting Services Act, a foreign person cannot exercise control over commercial TV licences. Foreign owners cannot have company interests in more than 25% of a subscription TV licence (and overall foreign interests cannot be more than 35%). There are no specific limits on foreign ownership or control of commercial radio in the Broadcasting Services Act and acquisitions under the Foreign Takeovers Act are considered on a case by case basis.
The Broadcasting Services Act sets up a system for granting a limited number of licences to broadcast radio and television. This is administered by the Australian Broadcasting Authority.
In 1999-2000, the Productivity Commission undertook a review of the media ownership rules and released a major report on the industry. Information on this is available at www.pc.gov.au.
Other recent Commonwealth legislation has modified the regulatory framework to reflect the introduction of digital television and datacasting and the regulation of online services. Legislative amendments include:
- Broadcasting Services Amendment (Online Services) Act 1999 (Cth)
- Broadcasting Services Amendment (Digital Television And Datacasting) Act 2000 (Cth)
- Television Broadcasting Services (Digital Conversion) Act 1998 (Cth).
Each year a dedicated issue of Communications Update provides comprehensive details of the ownership of Australia's major media.
The Centre has opposed substantial changes to Australia's current laws which would permit further consolidation in Australia's already highly concentrated media scene. If there is to be change to the current laws, the Centre takes the view that regulation must promote a diversity of sources of providers of information, particularly news and current affairs.
A review of the cross-media rules undertaken by the Department of Communications, Information Technology and the Arts in late 1996. The government indicated it would not proceed with changes to the law following this review as considerable political opposition to the changes mooted was voiced.
A further attempt to change the media ownership laws commenced in early 2002 with the introdution of the Broadcasting Services Amendment (Media Ownership)Bill 2002. There are current proposals in 2006 for media ownership reforms... See CLC Media Release >>>
Legislation
Ownership of Australia's major media is regulated under:
Broadcasting Services Act 1992
Foreign Acquisitions and Takeovers Act 1975
Trade Practices Act 1974 and policy published by the Foreign Investment Review Board (an agency reportable direct to the Treasurer)
Broadcasting Services Amendment (Media Ownership) Bill 2002
Media Ownership regulation in Australia
Other Resources
Australian Broadcasting Authority
Australian Competition and Consumer Commission
National Compeititon Council
Department of the Parliamentary Library
Investigation into Control - Prime Television Ltd (October 1999)
Investigation into Control: Mr Brian Powers, Mr Kerry Packer and Mr James Packer / John Fairfax Holdings Limited - March 1999
Investigation into Control: Associated Media Investments Ltd/DMG Regional Radio Pty Ltd - October 1998
Investigation into Control: CanWest Global Communications Corporation/The Ten Group Ltd - Third investigation - October 1998
Investigation into Control: CanWest Global Communications Corporation/The Ten Group Ltd - Second investigation - April 1997
Investigation into Control: News Corporation Ltd/ Seven Network Ltd - April 1996
Investigation into Control: CanWest Global Communications Corporation/The Ten Group Ltd - November 1995
Investigation into Control: Mr Kerry Packer/John Fairfax Holdings Ltd - April 1995
The Australian Press Council
DCITA
ÏMedia Ownership Rules are Part of a Larger ProblemÓ
DCITA -- The Economics of media Ownership
ÏMedia Ownership & the Rights of Access"
Cross media Laws
Carolyn Lidgerwood -- Towards Princes of Print being Queens of Screen and Regents of Radio [pdf]
ABA Ò Overview of Ownership & control of broadcasting Services
Pay TV Ò Markets & Ownership
Other Links
Review of Cross Media Rules: Issues Paper, 1 October 1996, Department of
Communications, Information Technology and the Arts
Submissions to Review of cross media rules, Department of Communications,
Information Technology and the Arts
Publications