A takeover by The West Australian newspaper's owner Seven West Media (SWM) of the Sunday Times newspaper and its website Perth Now has been given the green light by the Australian Competition and Consumer Commission (ACCC).

Key points: Takeover will not 'substantially lessen competition', ACCC says

Takeover will not 'substantially lessen competition', ACCC says Seven West Media welcomes ruling, set to finalise deal

Seven West Media welcomes ruling, set to finalise deal Premier Colin Barnett fears sale will reduce media competition

The decision by the consumer watchdog not to oppose the sale of the News Corporation assets appears set to give Kerry Stokes' SWM a monopoly on major newspapers in the state.

Seven West also owns Channel Seven, Yahoo7 and Pacific Magazines, while the companies are already joint venture partners in WA's Community Newspaper Group.

"Following an extensive review, the ACCC has reached the view that the proposed acquisition is, on balance, not likely to substantially lessen competition for either consumers or advertisers," ACCC chairman Rod Sims in a statement.

"On the consumer side, the large decline in print newspaper readership formed a major part of our analysis. Many consumers in Western Australia are now getting their news online or from other sources.

"With regards to SWM's ownership of thewest.com.au and the proposed acquisition of perthnow.com.au, we gave consideration to other online news alternatives for West Australians, including Fairfax's WAtoday.com.au and ABC News' dedicated Western Australian website."

Mr Sims said some advertisers had raised concerns about what the loss of competition would mean for them.

However he said most acknowledged the importance of print advertising was fading, and had already identified other options they could switch to if The West Australian tried to increase rates.

"Advertising expenditure in print newspapers in Perth is in steep decline," Mr Sims said.

"Most of the advertisers we spoke to … are spending less on print newspapers than a few years ago and are finding alternative ways of reaching target audiences, including via digital media."

Sunday Times staff in limbo amid job fears

There are concerns about job cuts at The Sunday Times and Perth Now. ( ABC News: Alisha O'Flaherty )

The Media, Entertainment and Arts Alliance (MEAA) of WA said staff at The Sunday Times had been briefed of the decision, but were now left in limbo.

"There are no shock announcements today in terms of how many people will be leaving etc," MEAA WA media section president Martin Turner said.

"They know the first thing about what's coming to pass, but there's still a lot to learn."

Mr Turner said the union was concerned a large proportion of staff could lose their jobs.

"I would think certainly admin staff would be greatly affected, and editorial — it depends on how this new operation manifests itself," he said.

Seven West Media welcomes ACCC ruling

However SWM welcomed the ACCC's decision and said it was looking forward to finalising the sale.

SWM's chief executive Tim Worner said The Sunday Times had a great heritage, and the company would "nurture both The Sunday Times and Perth Now for the benefit of all our readers".

"Seven West Media is the natural home of these assets as we further build their publishing and digital presence," he said.

"We look forward to finalising the agreement and ensuring a positive and growing future for The Sunday Times and Perth Now as they continue to be part of the fabric of Western Australia."

In the 12 months to the end of June, revenue plunged 12.4 per cent to $228.5 million on the back of a 16.5 per cent drop in advertising and a 9 per cent drop in circulation.

The newspaper also began targeting editorial staff for further forced redundancies last month after failing to find enough volunteers willing to leave the company.

Premier questions impact of deal

WA Premier Colin Barnett said he accepted the ruling and believed the impact on advertisers and consumers would be small.

However he said preserving a Sunday newspaper could come at the expense of more diverse commentary and analysis.

"The Sunday Times may have failed. If Seven West takes over the Sunday Times then we'll continue to have a Sunday newspaper," he said.

"But I fear there'll be less competition in terms of the competition of ideas, commentary and debate in our community.

"I guess that's the price we pay to keep the Sunday Times."

The Sunday Times was founded in 1897 and has long been owned by Rupert Murdoch's News Corp.

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