Competition concerns raised by planned online video platform of RTL and Pro7Sat1

The Bundeskartellamt confirms that on 23 February it issued a statement of objections concerning plans by RTL and Pro7Sat1 to form a joint venture for the creation and operation of an online video platform. With the statement of objections the authority has explained its competition concerns regarding the planed joint venture; now the participating companies have the opportunity to comment on these concerns. The deadline for a final decision ends on 21 March 2011.

As a preliminary result of its investigation, the Bundeskartellamt's view is that the creation of the joint platform in its intended form would further strengthen the still existing dominant duopoly between the two broadcasting groups on the market for TV advertising. According to the current stage of proceedings, a coordination of business interests via the joint venture would also be very likely, which would in turn constitute a violation of the prohibition of anti-competitive agreements.

In its assessment of the project, the Bundeskartellamt has given careful attention to the potential positive effects of a new video-on-demand platform. The authority has reached the preliminary conclusion that the benefits resulting from an increased range of video-on-demand offers and a simplified navigation through contents would only outweigh the negative effects for competition if the platform was open and purely technical. The participating companies, however, were not willing to open the platform to this degree.

Yet, as long as their plans continue to involve limited access to television channels and restrictions with regard to availability duration, availability dates and quality, it is the Bundeskartellamt's current view that the anti-competitive effects of the project prevail. In the authority's opinion, such a platform would preserve the current competition conditions on the television advertising market and transfer them to the segment of video advertising in online video contents.