Australian Commission Clears WPP for TNS Buy

The Australian Competition and Consumer Commission (ACCC) has announced that it will not intervene in WPP's acquisition of TNS, after receiving court-enforceable undertakings from WPP regarding its TAM (Television Audience Measurement) services.

While WPP provides TAM in Australia via its AGB Nielsen joint venture with Nielsen, TNS does not currently have a contract to supply TAM services in the country. The Commission's concerns centred around the fact that there were no other TAM providers able to compete with the merged firm in Australia, particularly in the short to medium term.

However, WPP has now assured the ACCC that it will either part with the AGB Nielsen Australian Business, or the TNS TAM business.

'The undertaking adequately addresses the ACCC's concerns by ensuring that there will continue to be a second, long-term viable competitor for TAM contracts in Australia,' explained ACCC Chairman, Graeme Samuel.

Samuel added that the ACCC considers that either divestiture will ensure the acquisition will not substantially lessen competition, since there will continue to be two strong competitors capable of competing for TAM services in Australia, as there are pre-acquisition.

Similarly, the European Commission recently accepted an assurance from WPP that it will get rid of either its 50% AGB Nielsen shareholding (to Nielsen), or the TAM services business currently owned and operated by TNS in the European Economic Area. Although they are located in Europe, the ACCC says that these TNS assets are crucial to the firm's ability to bid for Australian TAM contracts.

Web sites: www.accc.gov.au , www.wpp.com , www.kantargrouptns.com and www.agbnielsen.net .