Media 24 Ltd v New Media Publishing (Pty) Ltd (70/LM/Nov10) [2011] ZACT 11 (2 March 2011)

Media 24 Ltd v New Media Publishing (Pty) Ltd (70/LM/Nov10) [2011] ZACT 11 (2 March 2011)

The Tribunal found that the proposed transaction would not result in a substantial prevention or lessening of competition in any relevant market. The post-merger market shares in both contract publishing and consumer magazine markets remained below thresholds of concern, and sufficient competitors would continue to operate in these markets. The Tribunal accepted the Commission's assessment that vertical relationships between the parties would not result in foreclosure, given the existence of credible alternative suppliers and customers. No public interest concerns, such as retrenchments, were identified. Accordingly, the Tribunal approved the merger unconditionally.

Citation
[2011] ZACT 11
Parties
Applicant: Media24 Limited; Respondent: New Media Publishing (Pty) Ltd
Court
Competition Tribunal
Jurisdiction
South Africa
Judgment Date
2 March 2011
Case Number
70/LM/Nov10
Procedural Posture
Merger Approval / Final Decision
Outcome
Merger approved unconditionally.
Judges
Y Carrim, A Wessels, M Mokuena
Legal Topics
Merger Control, Horizontal Overlap, Vertical Relationships, Public Interest, Market Share Analysis
Competition Law Commercial and Corporate Merger Control Horizontal Overlap Vertical Relationships Public Interest Market Share Analysis

Case Brief

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Parties

Media24 Limited

Applicant

New Media Publishing (Pty) Ltd

Respondent

Procedural Posture

Merger Approval / Final Decision

Legal Issues

  1. 1 Whether the proposed merger would substantially prevent or lessen competition in any relevant market.
  2. 2 Whether any public interest concerns arise from the proposed transaction.
  3. 3 Whether the transaction results in horizontal or vertical competition concerns.

Ratio Decidendi

The Tribunal found that the proposed transaction would not result in a substantial prevention or lessening of competition in any relevant market. The post-merger market shares in both contract publishing and consumer magazine markets remained below thresholds of concern, and sufficient competitors would continue to operate in these markets. The Tribunal accepted the Commission's assessment that vertical relationships between the parties would not result in foreclosure, given the existence of credible alternative suppliers and customers. No public interest concerns, such as retrenchments, were identified. Accordingly, the Tribunal approved the merger unconditionally.

Court Disposition

Merger approved unconditionally.

Orders

  • The proposed transaction between Media24 Limited and New Media Publishing (Pty) Ltd is approved unconditionally.
  • No conditions are imposed on the merger.