COMPETITION – AUSTRALIA

Law firms’ new threat: accountants

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Original article by Agnes King, Katie Walsh
The Australian Financial Review – Page: 1 & 41 : 22-Jul-15

Australia’s four major accounting firms are aggressively expanding into the legal services sector. Ernst & Young has assembled a 16-strong team of lawyers in Australia, while PricewaterhouseCoopers boasts about 120 lawyers. In the past, accounting firms have tended to focus on areas such as tax litigation, but they are increasingly expanding into areas such as property and employment law. There is speculation that this trend may prompt some law firms to give more of their accounting work to smaller firms at the expense of the "big four".

CORPORATES
ERNST AND YOUNG, PRICEWATERHOUSECOOPERS AUSTRALIA (INTERNATIONAL) PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, KPMG AUSTRALIA PTY LTD, BAKER AND McKENZIE, ASHURST AUSTRALIA, K&L GATES LLP, DLA PIPER, KING AND WOOD MALLESONS, BEATON RESEARCH AND CONSULTING PTY LTD, BAR COUNCIL OF INDIA, SOCIETY OF INDIAN LAW FIRMS

Coles, Woolies cut private label prices to ward off Aldi incursion

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 : 15-Jul-15

Data from Deutsche Bank shows that there was a 1.3 per cent increase in the prices of brand-name groceries in the June 2015 quarter. However, the prices of private-label products fell by 6.1 per cent, as Coles and Woolworths sought to defend their market share against Aldi. Deutsche’s supermarket inflation survey also shows that the price of a basket of brand-name groceries at Coles increased by 5.1 per cent during the quarter, compared with a 2.6 decline at Woolworths.

CORPORATES
DEUTSCHE BANK AG, COLES SUPERMARKETS AUSTRALIA PTY LTD, WOOLWORTHS LIMITED – ASX WOW, ALDI STORES SUPERMARKETS PTY LTD, MACQUARIE EQUITIES LIMITED, METCASH LIMITED – ASX MTS, SUPA IGA

Flights threat only leverage with airports, says Qantas

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 21 : 8-Jul-15

Airport fees account for around nine per cent of Qantas Airways’ costs. The carrier has expressed disappointment that the Harper review of competition policy has not adequately addressed the issue of airports’ market power with regard to airport charges. Its stance has been supported by rival carrier Virgin Australia. Qantas has argued that airlines have limited bargaining power in pricing negotiations with airports.

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, BOARD OF AIRLINE REPRESENTATIVES OF AUSTRALIA INCORPORATED, SYDNEY AIRPORT – ASX SYD, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE

Regions running scare campaign, says Seven

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Original article by Max Mason
The Australian Financial Review – Page: 36 : 6-Jul-15

Southern Cross Media Group CEO Grant Blackley says the Australian Government should review cross-media ownership laws to ensure a "level playing field" for regional TV broadcasters. However, Seven West Media CEO Tim Worner argues that regional networks’ primary motivation for scrapping the "reach rule" is to make them more appealing to potential suitors. He argues that they should instead lobby for a reduction in licence fees, which could be redirected to local content such as news.

CORPORATES
SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, SEVEN WEST MEDIA LIMITED – ASX SWM, PRIME MEDIA GROUP LIMITED – ASX PRT, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TEN NETWORK HOLDINGS LIMITED – ASX TEN, WIN CORPORATION PTY LTD, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, PALMER UNITED PARTY, AUSTRALIA. DEPT OF COMMUNICATIONS

Streaming addresses digital appetite: James

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 29-Jun-15

Presto CEO Shaun James believes that Australian streaming video services offer sufficiently competitive prices to deter consumers from downloading illegal copies of films and TV shows. He argues that the situation cannot be compared with the rise of music-sharing service Napster, as there were no alternatives for buying legitimate copies of music online at the time. The Presto joint venture between Foxtel and Seven West Media will launch its first Australian-made TV show later in 2015.

CORPORATES
PRESTO ENTERTAINMENT PTY LTD, FOXTEL MANAGEMENT PTY LTD, SEVEN WEST MEDIA LIMITED – ASX SWM, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NAPSTER INCORPORATED, THE PIRATE BAY, XYZNETWORKS PTY LTD, WARNER MUSIC AUSTRALIA PTY LTD, APPLE INCORPORATED, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

DJs set to join great Aussie food fight

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Original article by Sue Mitchell
The Australian Financial Review – Page: 17 & 22 : 25-Jun-15

South Africa-based Woolworths Holdings is believed to be planning to build a presence in Australia’s food and grocery sector, via its David Jones subsidiary. The group intends to revamp the food halls in David Jones department stores, and the strategy may also include establishing stand-alone food stores to compete with local grocery retailers Coles and Woolworths Limited. Meanwhile, Woolworths Holdings is said to be looking at selling two of its stores in the Melbourne and Sydney CBDs.

CORPORATES
WOOLWORTHS HOLDINGS LIMITED, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, THOMAS DUX GROCER, JONES THE GROCER, MARKS AND SPENCER PLC, NM ROTHSCHILD AUSTRALIA HOLDINGS PTY LTD, COUNTRY ROAD LIMITED, JP MORGAN AND COMPANY INCORPORATED, FOODCHAIN BY DAVID JONES

Aldi hits back at claims of shirking tax

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 24-Jun-15

Discount grocery chain Aldi says it fully complies with its Australian tax obligations, and has advised that its local income tax bill for the year to 31 December 2013 totalled $A81.6m. The German-owned group was responding to comments by Wesfarmers CEO Richard Goyder, who had questioned whether Aldi was paying sufficient tax in Australia. Aldi boasted local sales of $A6bn in 2014, which was around 13 per cent higher than previously, and it is gaining market share at the expense of its rivals.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, WESFARMERS LIMITED – ASX WES, ALDI EINKAUF GMBH & CO OHG, WOOLWORTHS LIMITED – ASX WOW, METCASH LIMITED – ASX MTS, IGA, COLES SUPERMARKETS AUSTRALIA PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN TAXATION OFFICE, GOOGLE INCORPORATED, APPLE INCORPORATED, MICROSOFT CORPORATION, UBS HOLDINGS PTY LTD, MOODY’S INVESTORS SERVICE INCORPORATED

Scene could be set for another capacity war

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Original article by Matt O’Sullivan
The Australian Financial Review – Page: 21 : 23-Jun-15

Qantas and Virgin Australia both increased their capacity on domestic routes in recent years, which kept a lid on airfares. However, new data shows that airfares began rising again in 2014, after the two carriers slowed the rate at which they added new aircraft to their fleets. Little growth is expected in either fleet in 2015, but a report produced by 4th Dimension and the Centre for Asia-Pacific Aviation notes that it would not take much for them to engage in a renewed "capacity war".

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, VIRGIN AUSTRALIA HOLDINGS LIMITED – ASX VAH, 4TH DIMENSION, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, CENTRE FOR ASIA PACIFIC AVIATION, JETSTAR AIRLINES PTY LTD, AUSTRALIA. DEPT OF INFRASTRUCTURE AND REGIONAL DEVELOPMENT. BUREAU OF INFRASTRUCTURE, TRANSPORT AND REGIONAL ECONOMICS, ANSETT AUSTRALIA HOLDINGS LIMITED

Google a scary competitor, says Ten boss

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Original article by Paul McIntyre
The Australian Financial Review – Page: 29 : 22-Jun-15

Foxtel’s MCN advertising business will assume responsibility for selling ads on the Ten Network in September 2015. Ten CEO Hamish McLennan says global internet companies such as Google present a major threat to Australian TV broadcasters, and warns that they could soon be competing with traditional media companies for sports broadcasting rights. MCN CEO Anthony Fitzgerald adds that there is a need to redefine TV as consumers are now watching broadcast-quality video on a range of devices.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, MULTI CHANNEL NETWORK PTY LTD, SOUND ALLIANCE PTY LTD, GOOGLE INCORPORATED, AUSTRALIAN FOOTBALL LEAGUE, NATIONAL RUGBY LEAGUE, OPTIMUM MEDIA DIRECTION PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, QANTAS AIRWAYS LIMITED – ASX QAN, McDONALD’S AUSTRALIA LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, THE HOOPLA

Retailers duck for cover as global chains battle it out

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Original article by Sue Mitchell
The Australian Financial Review – Page: 13 & 18 : 10-Jun-15

International fast-fashion retailers H&M and Forever 21 will shortly open stores in Sydney’s Pitt Street Mall. The growing presence of offshore retailers has forced Australian rivals such as Just Jeans and Sussan to relinquish space in the prestigious shopping precinct, and experts warn that local retailers’ sales are likely to be adversely affected by the growing competition in the sector. Forever 21 boasts more than 700 stores worldwide, and it will open about 70 outlets in 2015.

CORPORATES
HENNES OCH MAURITZ AB, FOREVER 21 INCORPORATED, ZARA, JUST JEANS PTY LTD, PREMIER INVESTMENTS LIMITED – ASX PMV, SUSSAN-SUZANNE GRAE, GLUE, TOPSHOP, COTTON ON, SUPRE PTY LTD, SES, VALLEY GIRL FASHIONS PTY LTD, SHARAF RETAIL, AGENT PROVOCATEUR