iiNet criticises proposed Foxtel takeover of Austar

IPTV and internet service provider iiNet has heavily criticised Foxtel’s proposed takeover of Austar in a submission to the Australian Competition and Consumer Commission (ACCC).

According to Delimiter, iiNet has raised concerns about the proposed takeover would reduce competition from internet based subscription TV (IPTV) services, such as FetchTV (offered by iiNet) and QuickFlicks.

Foxtel had earlier issued undertakings to the ACCC including that it will not seek exclusivity agreements with distributors on a number of key channels (including Sky News, Disney Channel and ESPN), allowing competitors to offer new release movies on demand, and offering signal access to IPTV providers.

However, iiNet claims in its submission that Foxtel’s undertakings do not allow IPTV access to premium domestic sport (a key driver of subscription television services), and that while Foxtel has undertaken not to seek exclusivity agreements over key channels, it will not be bound to offer competitors access to these channels.