Australian Competition and Consumer Commission officials are keeping abreast of issues that may arise from Australian Associated Press closing.
Media commentators such as Guardian Australia editor Lenore Taylor say small outlets will struggle to compete without the subscription-based news agency.
They fear a lack of diversity among industry players, and its effect on democracy.
The competition watchdog has not announced an investigation.
“The ACCC is aware of the announced closure of AAP and is keeping abreast of potential issues that may arise,” it said.
A spokeswoman said it would need to find that competition would likely be lessened in order to raise concerns.
The commission considered the impact of Facebook and Google on the viability of news and journalism during its digital platform inquiry. It published its recommendations last year.
AAP management on Tuesday announced the agency will close on June 26 after 85 years.
About 180 jobs will be lost from AAP’s editorial arm and hundreds more from subsidiaries.