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2DU change advertising restriction after A.C.C.C. action



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TEL: 02-62642911 22.Jul.99 12 = 25 No .051 P.01/01

Attn: Business writers

2DU CHANGES ADVERTISING RESTRICTION AFTER A.C.C.C. ACTION

Western Broadcasters Rty Limited, the operator of the radio station 2DU, has provided court-enforceable undertakings to the Australian Competition and Consumer Commission after an investigation into the refusal to accept advertisements from Tradesmen You Can Trust and Tradesmen You Can Trust Rty Limited.

In 1996 Western held the only commercial radio broadcasting licence for the Dubbo licence area. Western had accepted advertisements from the group until the end of February 1996 after which time it refused to accept further such advertising.

The ACCC believes the conduct of Western in refusing to accept the advertisements from 1 March 1996 was a misuse of its market power.

Western had a substantial degree of power in the commercial broadcast radio advertising services market In the Dubbo area. Western's refusal to accept advertisements from the group from 1 March 1996 amounted to a misuse of its market power for the purpose of deterring or preventing the group from engaging in competitive conduct in the market for the promotion of the services of professional tradesmen in the Dubbo area.

The ACCC raised its concerns with Western that has provided the undertaking to address the ACCC's concern and has agreed to accept and broadcast advertisements from the group, subject to usual commercial consideration.

“This is a small business issue that relates to regional and rural Australia," ACCC Chairman, Professor Allan Pels, said today. "The involvement of the ACCC in this matter highlights the fact that the ACCC takes seriously its role in

assisting small business in regional areas".

Further information Professor Allan Pels, Chairman, (03) 9290 1812 or pager (016) 373 536 Lin Enright, Director, Public Relations, (02) 6243 1108 or (0414) 613 520 MR 129/99 22 July 1999

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