PRESS RELEASE

AUDIOVISUAL SECTOR: ANTITRUST AUTHORITY LAUNCHES SECTOR INQUIRY

Authority to assess effects of the process of development in the sector on competition dynamics

The Autorità Garante della Concorrenza e del Mercato has decided to launch a sector inquiry to determine the effects of the process of development in the audiovisual sector on competition dynamics and on consumers.
In the Authority’s view, the digitalisation of the television broadcasting system on the one hand and the development of innovative production, distribution, broadcasting and content access methods on the other require in-depth analysis in order to understand, in perspective, the possible repercussions for markets from the technological and economic point of view.
For the Antitrust Authority the digitalisation of terrestrial broadcasting networks, through the more efficient use of the radio spectrum, makes it possible to overcome the scarcity of frequency resources which has historically constituted a significant market entry barrier. The open platform of digital terrestrial broadcasting will enable both an increase in the number of nationally and locally broadcast free-to-air channels and the development of pay-tv services. This development is supplemented by the convergence between the television industry and the telecommunications industry, which is set to have its full impact with the development of new-generation access networks.
The inquiry, which will also examine the effects of the spread of the Internet – and therefore issues relating to intellectual property and how to protect it – will need to assess to what extent the transformation under way is relevant for the purpose of defining relevant markets, which is crucial for the activity of the Antitrust Authority. It will also be necessary to establish what the determining factors are for the acquisition or consolidation of market power on the part of enterprises. Indeed, it is important that during this phase – which is rich in pro-competition potential, as is essential to increase consumer choice – there are no obstacles to competitive development, connected for example to the proprietary nature of platforms, to the use of locked decoders and the exclusory capability of software applications and search engines.


Rome, 19th February 2010