Fairfax Media has been given a slap on the wrist by the consumer watchdog over its failure to comply with an agreement regarding Hunter Valley and Newcastle community papers following the acquisition of Rural Press.
The Australian Competition and Consumer Commission (ACCC) said it had an agreement withFairfax Media that it would ensure the competitive viability of the community newspapers which were part of the A$2.8 billion ($3.2 billion) Rural Press deal in 2007.
Last year, the ACCC said initially it would not oppose the acquisition of Rural Press by Fairfax following an undertaking by the media group to allay concerns about competition for advertising in the Newcastle and Hunter Valley community newspaper sector.
According to the ACCC, Fairfax is meant to sell free circulation papers the Newcastle and Lake Macquarie Post and the Hunter Post.
But the ACCC said Fairfax had retained the Newcastle and Lake Macquarie Star and the Lower Hunter Star, both free weeklies with a similar circulation area to the Hunter Post.
"Before the sale of the Post in November 2007, a number of changes were made to the format and content of the Post, which the ACCC believes to be inconsistent with the terms of Fairfax's undertaking," the ACCC said.
"The ACCC has raised its concerns with Fairfax, which has now agreed to take steps to restore the Post to its pre-sale position." The ACCC said it would continue to monitor the situation.
