ABC and SBS are not distorting media market, government inquiry finds


Michelle Grattan, University of Canberra

The government’s inquiry into whether the ABC and SBS are competing
fairly with the private sector’s media operators has given a tick to
the public broadcasters.

The report concluded: “Given their market shares, and other factors, this inquiry considers the National Broadcasters are not causing significant competitive distortions beyond the public interest”. But it did see the need for greater transparency from them.

The review arose from a 2017 deal between the government and Pauline
Hanson to get One Nation support for media law changes which
liberalised ownership rules. It has been chaired by Robert Kerr,
formerly from the Productivity Commission. The report was released by
Communications Minister Mitch Fifield on Wednesday.

The outcome will be disappointing to News Corp in particular which has
been highly critical of the ABC’s expansion in online publishing. The
former Fairfax organisation, now taken over by Nine, also complained
about the competition eating into the market of commercial media
groups.

The report said: “Competitive neutrality seeks to ensure that
competition is not distorted by public entities taking inappropriate
advantage of government ownership.

“It is not intended to prevent public entities from competing, nor to
relieve discomfort from competitive processes which are bringing
benefits to consumers as they rapidly adopt and enjoy new services”.

The inquiry found the broadcasters’ business activities in order; they
were “abiding by a best endeavours approach to competitive
neutrality.” It suggested there should be some improvements in
transparency and internal procedures.

Beyond that, “the question arises as to how competitive neutrality
principles about competing fairly without distortion might apply to
the free services delivered by the ABC and SBS.

“Free ABC and SBS services are having some competitive impact.
Submissions included complaints about the ABC’s online news service
and SBS’ multi-channel and streaming services. But the National
Broadcasters are established and funded to provide free services. So
long as they operate within their statutory Charters they are
operating in the public interest”.

The report said submissions questioned whether the broadcasters were
operating within their charters. But, it said, these charters were
very broad, and reporting against them “is not detailed or robust
enough to settle doubts”.

“Accountability is difficult, especially as there is no opportunity
for Charter complaints to be addressed”.

The broadcasters should improve their reporting of charter performance
in the context of competitive neutrality. “If this enhanced reporting
does not occur, the government should consider a way of managing
complaints about Charter performance in this area,” the report said.

“While the National Broadcasters are not prohibited from competing,
some improvements in the way they interact with markets should be
contemplated”.

The report also said the government should consider options for a
longer term funding framework for the national broadcasters,
accompanied by increased transparency and accountability.

Fifield said he recognised the broadcasters’ charters were broad and
allowed flexibility in how their boards implemented them.
“It is now up to the national broadcasters to act on these
recommendations,” he said.

Labor’s communications spokeswoman Michelle Rowland said the
government’s “fishing expedition” had spent half a million dollars to
establish what the public broadcasters had said all along – that they
“are operating in a manner consistent with the general principles of
competitive neutrality.

“Australians trust and value the ABC and SBS and should not have to
foot the bill for Mitch Fifield and Pauline Hanson’s vendetta against
public broadcasting,” she said.

Also in return for Hanson’s support the government agreed to bring in
legislation to require the ABC to be “fair” and “balanced” in its
coverage.

Under the legislation, the board would be required “to ensure that the
gathering and presentation by the Corporation of news and information
is fair, balanced, accurate and impartial according to the recognised
standards of objective journalism.”

But the legislation is bogged down, with no chance of being passed
before the election.

The government has yet to appoint a new ABC chair, after the implosion
within the organisation involving the board sacking managing
director Michelle Guthrie and the resignation of Justin Milne as chair
amid a row over editorial interference.The Conversation

Michelle Grattan, Professorial Fellow, University of Canberra

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.