NZME and Fairfax are heading to the High Court and appealing the Commerce Commission's rejection of their merger proposal.

The regulator believed the merger between the two media companies would likely lessen competition - specifically in Sunday newspapers, online news and community newspapers in 10 regions.

The commission, which released its final decision earlier this month, was also of the view that the deal wasn't of enough public benefit that it should be allowed.

Both companies are now challenging its ruling in the High Court.

NZME owns the NZ Herald, Herald on Sunday, nzherald.co.nz website, a range of regional newspapers, Newstalk ZB and entertainment radio stations, while Fairfax owns stuff.co.nz, the Sunday Star-Times and other metropolitan and regional newspapers. The companies wanted to merge as traditional revenues decline so they could better stand up to the likes of Google and Facebook, which are taking an ever increasing share of the online advertising market.

NZME chief executive Michael Boggs said when the merger was rejected that it had been an exciting prospect for both businesses and their audiences.

He said NZME's strategic focus continued in six key areas: growing audience reach, retaining print revenue, returning radio revenue to growth, growing new revenue streams, ensuring effective cost management and developing people and talent.

Commission chairman Mark Berry said when rejecting the merger proposal that the regulator recognised that NZME and Fairfax face a "challenging commercial environment".
But he disagreed with some of the scenarios put forward by NZME and Fairfax about their respective futures without the merger.

"This level of influence over the news and political agenda by a single media organisation creates a risk of causing harm to New Zealand's democracy and to the New Zealand public," Berry said.