News Corp's plan to buy APN News and Media's regional Queensland newspapers will likely lead to substantially less competition in the state, the consumer watchdog says.
The Australian Competition and Consumer Commission has released a statement of issues and called for submissions on News' proposed purchase of APN's Australian Regional Media.
It said that, given that News Corp already owns the statewide Courier Mail, its buyout of Australian Region Media is likely to substantially lessen competition in the supply of news and information to readers in areas currently covered by the regional papers.
It also is likely to lessen local advertising opportunities.
"If the proposed acquisition proceeds, News will own both The Courier Mail and the local paid newspaper in nearly every city or town in Queensland," ACCC chairman Rod Sims said in a statement on Thursday.
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"This may result in a reduction of quality and diversity of content available to readers."
APN's shares were 7.5 cents, or 1.6 per cent, lower at $3.415, while News Corp was up 62 cents, or 3.2 per cent, at $19.68 at 1201 AEDT on Thursday.
