The competition watchdog is examining whether the Lachlan Murdoch-Bruce Gordon takeover of the Ten Network will change Australia's media landscape.
The Australian Competition and Consumer Commission has sought submissions on how the joint takeover bid for Ten by its billionaire shareholders might hit competition in Australian media and advertising, as well as any effects on what TV viewers might see.
In an issues letter released on Friday, the ACCC outlined potential issues including how ownership of Ten might affect Australian sports programming via any limitations on negotiating positions or commercial independence of sports bodies, audience reach or free-to-air broadcasting.
Mr Murdoch has broad media interests as executive chairman of 21st Century Fox, co-chairman of News Corporation, and, through his investment firm Illyria, owner of the Nova Entertainment radio group where he is also executive chairman.
News Corp Australia owns Fox Sports Australia as well as 50 per cent of Australia's largest pay television provider Foxtel, which also offers the Presto content-on-demand service, a joint venture with Seven West Media.
In October, 2015, the ACCC endorsed Foxtel's purchase of a 15 per cent stake in Ten.
21st Century Fox meanwhile, holds a 50 per cent stake in Endemol Shine, which produces and distributes Ten's highest-rating programming like Survivor and Masterchef.
It is Mr Murdoch's central position within these organisations along with Mr Gordon's control of the WIN TV network and stake in the Nine Network that are among the key points of focus for the ACCC.
Mr Murdoch and Mr Gordon formed a joint venture after Ten's directors put the struggling broadcaster into administration on June 14 following the billionaire pair's decision - along with fellow Ten shareholder James Packer - not to support a new $250 million loan the network needs to stay afloat.
The rich-lister trio are all Ten shareholders and are guarantors on an existing $200 million loan Ten has with the Commonwealth Bank of Australia.
Through their respective investment vehicles Illyria and Birketu, Mr Murdoch and Mr Gordon are seeking 50:50 ownership of Ten, with equal economic, voting and boardroom control and neither able to individually control the business.
The potential deal falls foul of current media ownership laws, however the passage of a reform bill due in parliament on August 8 could open the way to "vary or remove" the restrictions, according to the competition watchdog.
"The potential transaction is contemplated on the assumption that the Bill is passed into law," the ACCC said.
Submissions to the ACCC are due by July 24, with a decision or statement of issues to be released on August 24.
