Watchdog Australia causing on the submission of Murdoch pay TV

SYDNEY (AP) - the Australia competition watchdog was concerned a bid by operation of the cable of Rupert Murdoch to buy a rival, saying that it would create a "virtual monopoly" service of pay television in the country.The statement by the Commission of consumer and competition Friday Australian is a further setback for Murdoch, whose media empire is mired in a phone hacking scandal in Britain. His News Limited, a subsidiary of its U.S.-based News Corp., has considerable issues in the companies of Australian media, including FOXTEL, the largest provider of TV subscription in the country.Although the Declaration of the ACCC is only on its preliminary findings, it gives a clear indication that it could be opposed to this merger. The agreement cannot cross without the approval of the commission.FOXTEL, which offers over 200 channels to 1.63 million subscribers in the metropolitan areas of the Australia, seeks to purchase of Austar, which has more than 760 000 subscribers.Austar, however, is available primarily in regional and rural Australia, and the only place where the two rivals are in competition is, in the ACCC Coast.The of gold, said that by reason of separate markets of the two companies, he had an important place for competition in the sector of in Australia.It cable television, said that its preliminary view is that "the proposed acquisition is likely to cause a substantial lessening of competition in the domestic market for the" "" provision of subscription television services"."The proposed merger would therefore effectively create a virtual monopoly subscription television provider through the Australia, "he says.Refusing a merger "increase substantially the ability and the motivation for FOXTEL and Austar to compete with each other outside their region of existing distribution", the statement said. "The proposed acquisition would prevent all this competition occurs,"he says.The ACCC said television free-to-air networks are competing close step subscription TV to limit the actions of a Foxtel ACCC combined - Austar .the requested further submissions from parties interested in August 11, and she plans to publicly announce his final opinion by September 8.