PRESS RELEASE

THE ICA GAVE CONDITIONAL APPROVAL TO THE RADIO MERGER RTI/GRUPPO FINELCO

The ICA gave conditional approval to RTI Reti Televisive Italiane - controlled by Mediaset and belonging to group Fininvest – to take over Gruppo Finelco (Radio Montecarlo, Radio 105, Virgin Radio). The ICA’s requirements provide for the obligation to release Radio Italia’s and Radio Kiss Kiss’s advertisement management contracts upon their natural expiry, and the prohibition to acquire new contracts or new radios until 2020.

The recently concluded investigation ascertained that the take-over of Gruppo Finelco would have led to the creation of “Sistema Radio Mediamond” (Radio 101, Radio Montecarlo, Radio 105, Virgin Radio, Radio Italia, Radio Kiss Kiss, Radio Subasio, Radio Norba) characterized by an “unopposed leadership” and therefore “capable of reaching any target within the population aged 15-64 years old (commercial target)”. The merger would have determined, therefore, horizontal and conglomerate prejudicial effects, that is effects connected to Mediaset’s positioning in the adjacent market of advertisement collection on the television means.

The Authority closed the proceedings prescribing a series of measures aimed at eliminating the distortive effects that the realization of the mentioned merger and acquisition would have produced on competition. Among the various measures, the obligation not to renew the contracts entered into with Radio Italia and Radio Kiss Kiss for radio advertisement management upon their expiry. In the first semester of 2015 the two radios had an audience share equal to 13.6% in an average day, 18.3% in the female segment and 14.5% in the 15-34 year old target.

Moreover, among the ICA’s measures, the prohibition to acquire advertisement contracts or the property of other national radios until 2020, and the obligation to carry out company separation as regards television advertisement collection (both free and pay-tv) and radio advertisement collection.

Rome, 15 April 2016