GROUPE CANAL+/STREAM
PRESS RELEASE
PRESS RELEASE
The Competition Authority has begun an investigation into a planned merger between Telepiù and Stream
At its meeting on 12 September the Competition Authority resolved to commence investigations, pursuant to section 16 of the Competition Act, into the Groupe Canal , Telepiù S.p.A. and Stream S.p.A. companies to assess the merger which they notified of 25 July and 13 August. In the Authority's opinion, this merger is likely to give the Canal+ group a strengthened dominant position on the national pay-TV market, over which it would acquire a monopoly by becoming the only pay-TV operator in Italy. There is a risk that such a merger might significantly eliminate competition on a lasting basis, also in view of the considerable market entry barriers, that would damage consumers, by removing any incentives to improve the quality and the variety of the services and by doing away with price competition and other trading terms and conditions.
Other markets affected by the merger, which will therefore be taken into account by the Authority, are premium sports broadcasting rights and pay-TV film rights, as well as the interactive digital television services market.
For following this operation, Telepiù would become Italy's only network in negotiations with football clubs for the live broadcasting of championship matches. In the opinion of the Authority this merger would strengthen the dominant market position in favour of Telepiù for premium sports broadcasting rights, considering the importance of live broadcasting rights over football championship games.
Since the merger entails the acquisition of the television broadcasting rights currently held by Stream, this merger is also likely to strengthen the dominant position on the national market for the acquisition of pay-TV film broadcasting rights, making Telepiù a monopsonist. Because of the system of time slots introduced by the broadcasting "windows" system, Telepiù would become the only national broadcaster able to acquire the film broadcasting rights for a specific period of time.
Lastly, the merger also appears likely to substantially weaken competition on the market of interactive digital television.
The investigation will be completed within 45 days.
Rome, 12 September 2001