Newly-merged radio network Southern Cross Austereo, which held its AGM today, is trying to avoid selling radio licences it undertook to dispose of earlier this year and has commenced Federal Court action to prevent the media regulator ACMA from enforcing the requirements of the Broadcasting Services Act.

Last week the company, chaired by Max Moore-Wilton and headed by industry veteran Rhys Holleran, advised the ASX that it had commenced legal action against ACMA to compel the regulator to reconsider the company's application for a reduction in the overlap between the Nambour and Brisbane radio licence areas. Because of the boundary overlap they are treated as a single licence area for the purposes of the BSA, so SCA must sell two of its FM licences in the Brisbane-Nambour area (it currently owns four) in breach of the Act. It acquired the Brisbane licences when Southern Cross acquired Austereo in a merger advised by Southern Cross's part owner Macquarie Group earlier this year.