WIN’s Bruce Gordon breached media rules, ACMA finds

TV mogul Bruce Gordon will face no further action after he unknowingly broke media ownership rules.

WIN’s Bruce Gordon “could not reasonably have known that he was in breach of media laws”. Picture: John Feder.

WIN Corporation owner Bruce Gordon breached media control and diversity rules after his shareholding in regional broadcaster Prime Media Group increased earlier this year.

The Australian Communications and Media Authority found that the billionaire businessman bought a 11.59 per cent shareholding in Prime on April 29, which together with his existing 14.99 per cent stake, took Mr Gordon's total holding to 26.58 per cent.

The shareholding increase placed Mr Gordon in a position to exercise control of commercial television licences held by subsidiaries of Prime until May 24, when Mr Gordon sold 43 million shares, equivalent to a 11.73 per cent stake, according to ACMA.

The media and telecommunications regulator said Mr Gordon breached the so-called “one-to-a-market” commercial television licence rule in eight separate licence areas during the period. It also caused an “unacceptable media diversity situation to occur, or to be worsened, in more than 40 licence areas”.

However, the ACMA said it considered evidence from Mr Gordon that the breaches occurred as a result of third-party actions that were contrary to his instructions, and that he “could not reasonably have known that he was in breach of media laws”.

The regulator noted that Mr Gordon sold down his Prime shareholding as soon as he became aware of the mistake.

The ACMA “found no evidence to suggest that Mr Gordon took any actual steps to exercise control over Prime” from April 29 to May 24, and will take no action.

“Given the limited duration of the breaches and our satisfaction with the action to rectify the breaches, the ACMA will not take any further action on this matter,” ACMA chair Nerida O’Loughlin said.

Under the Broadcasting Services Act, a person is deemed to be in control of a media asset when they buy more than 15 per cent of a company, which holds that asset. That is regardless of whether the person can exert actual control over the asset, which is a separate test.