The Commission last month said it had delayed its decision on whether to approve the company's tie-up with Vodafone NZ and said the merged entity would use its muscle to squeeze out smaller rivals.
In today's statement on NZME and Fairfax, the Commission said in its preliminary view, the merger would be likely to substantially lessen competition in a number of markets, including the markets for premium digital advertising, advertising in Sunday newspapers and advertising in community newspapers in 10 regions throughout New Zealand.
"It also considers the merged entity would be likely to increase subscription and retail prices for Sunday newspapers and introduce a paywall for at least one of its websites," the Commission said.
The two media companies made a joint statement to the NZX this morning, saying the Commission's concerns relating to plurality of media were "unquantified."
"The parties' view is that the NZCC has failed to properly take into account the diversity of opinions that will continue post-transaction in an increasingly converged digital world," the statement said.
The Commission is seeking submissions on its draft determination by the close of business on Tuesday November 22.
