Antitrust Law Daily Wrap Up, ANTITRUST NEWS: EC approves Liberty Global’s acquisition of controlling stake in De Vijver Media, (Feb 24, 2015)

By Edward L. Puzzo, J.D.

The European Commission has cleared cable company Liberty Global’s acquisition of a controlling interest in De Vijver Media, the Commission announced today (IP/15/4481).

Belgium-based media company De Vijver Media NV broadcasts channels Vier and Vijf, targeting Belgium’s Dutch-speaking population. International cable operator Liberty Global sought joint control over De Vijver with existing shareholders Waterman & Waterman and Corelio Publishing.

The Commission had concerns that, should a merger be allowed to proceed, De Vijver would refuse to license its channels to TV distributors that compete with Telenet, a cable company controlled by Liberty Global. The Commission’s investigation found that TV distributors in Flanders and Brussels must offer Vier and Vijf to compete with Telenet, and further found that it would be profitable for Telenet and De Vijver to withhold Vier and Vijf from competitors such as Belgacom and TV Vlaanderen. These competitors would find it harder to attract and retain customers without Vier and Vijf, while new players, such as Mobistar, would not be able to enter the market at all.

The Commission’s concerns were partially removed by the fact that, during the investigation, De Vijver and Telenet entered into several agreements with other market participants. Specifically, De Vijver closed agreements with some TV distributors to license Vier and Vijf and offered to prolong its agreements with others. Telenet amended its agreement with VRT to ensure that VRT’s content would not be disadvantaged compared to that of De Vijver Media. Telenet offered to amend its agreement with Medialaan in the same way.

Consequently, the Commission cleared the merger by obligating De Vijver to license its channels – Vier, Vijf, and any other similar channel it may launch – to TV distributors in Belgium under fair, reasonable, and non-discriminatory terms. De Vijver must also license to distributors linked services such as catch-up TV and PVR (a service that allows users to record programs and view them at a later stage). The commitments will be in place for seven years. They ensure that Telenet’s competitors are able to offer Vier and Vijf to their subscribers and have no competitive disadvantage vis-à-vis Telenet.

“It is important that consumers can choose among TV distributors competing on equal and fair basis,” said Margrethe Vestager, Commissioner in charge of competition policy. “The commitments will ensure this, since Telenet’s competitors will be able to distribute Vier and Vijf and offer these channels to their customers.”

Companies: Liberty Global; De Vijver Media NV; Telenet; Waterman & Waterman; Corelio Publishing.

News: AcquisitionsMergers Antitrust