The proposed merger between Foxtel and Fox Sports Australia won't be opposed by the consumer watchdog because it believes the deal will not reduce competition.
The Australian Competition and Consumer Commission says the commercial incentives of Foxtel, Fox Sports and their owners, News Corporation and Telstra, will not substantially change and the move is, therefore, unlikely to lessen competition.
Fox Sports is completely owned by Rupert Murdoch's News Corp, while Telstra and News Corp currently share a 50-50 ownership of Foxtel.
The merger would leave News Corp with 65 per cent and Telstra with 35 per cent of a new company, which could be listed on the ASX following its expected completion in the first half of 2018.
ACCC chairman Rod Sims said the review of the merger, which began in October, focused on the acquisition of sporting content and considered the effect of the merger and related agreements by broadband and mobile providers.
Telstra will be the exclusive telecommunications agent for Foxtel's digital products as part of the deal.
"An important consideration was that consumers will still be able to access Foxtel's digital products even if they acquire broadband or mobile services from Telstra's competitors," Mr Sims said on Thursday.
In announcing the proposed merger in August, News Corp chief executive Robert Thomson said the world of content was becoming "more complicated and competitive" and noted the importance of Australia having a "strong local platform" for its sports and home-grown shows.
