The ACCC has proposed to make a final decision on the Ten-Foxtel deal on October 22. Photo: Getty Images

Sports rights are at the top of the list of concerns for the Australian Competition and Consumer Commission about Foxtel's proposed acquisition of up to 15 per cent of Network Ten Holdings.

The competition watchdog has released a statement of issues on Foxtel's proposed acquisition of up to 15 per cent of Network Ten Holdings, as well as the merger of Ten's advertising business with the Foxtel-Fox Sports joint-venture Multi-Channel Network, and will invite for further submissions from the media industry.

The ACCC has proposed to make a final decision on the deal on October 22.

The statement of issues provides the corporate watchdog's preliminary views, highlights issues that cause varying degrees of competition concern and identifies what inquiries it would like to make.

Advertisement

"The ACCC is concerned that the proposed acquisitions have the potential to substantially lessen competition for the supply of free-to-air television services in Australia, particularly in the broadcasting of sports content," ACCC chairman Rod Sims said.

"The proposed acquisitions may increase the likelihood of Ten and Foxtel entering into joint bids and other commercial arrangements for acquisition of sports rights, to the exclusion of other free-to-air networks. Such arrangements could enhance Ten's ability to acquire the rights to sports, including premium sports, and could increase the likelihood of more sport being shown exclusively on Foxtel."

Given the importance of sport to the free-to-air broadcasters, the watchdog is concerned that Ten may gain advantage in acquiring those rights, which could lead to a substantial lessening of competition, Mr Sims said.

"The ACCC is also concerned that the proposed acquisitions may reduce competition in the sale of advertising, including by further consolidation in this market, and by removing or reducing competition between Ten and Foxtel for advertising sales."

The ACCC said the proposed acquisition of 10 per cent of Presto, Foxtel and Seven West Media's joint venture subscription video on-demand service, by Ten would not likely raised concerns about the supply of SVOD services.