Bundeskartellamt imposes fines on Pro7Sat1 and RTL on account of agreements on the basic encryption of TV programmes - Unencrypted SDTV secured for the next few years

The Bundeskartellamt has imposed fines totalling approx. € 55 million on the two TV broadcasting groups Pro7Sat1 and RTL as well as on two individuals involved. The companies are accused of having entered into anticompetitive agreements when they introduced the encryption of their digital free TV programmes. The two broadcasting groups have now undertaken to offer their major SD programmes unencrypted for a period of ten years. This commitment covers the cable, satellite and IPTV transmission paths. It does not include the encryption of HD programmes.

Andreas Mundt, President of the Bundeskartellamt: "According to the Bundeskartellamt's investigations, the two broadcasting groups agreed in 2005/2006 that, as of then, they would broadcast their SD digital free TV programmes only in encrypted form and charge an additional fee. The broadcasting groups also planned to make use of technical measures such as anti-ad blockers and copy protection functions to restrict the TV viewers' options for using the programme signals. These agreements covered the cable, satellite and IPTV transmission paths. They were applied at least until the Bundeskartellamt searched the companies in May 2010, in many networks even longer."

The orders imposing the fines are not yet final and can be appealed to the Düsseldorf Higher Regional Court. However, all the companies have agreed to have the proceedings terminated by settlement.

Furthermore, the Bundeskartellamt has been given binding commitments by both broadcasters to stop the basic encryption of their free TV programmes broadcast in SD throughout Germany from 2013. The two groups will maintain their unencrypted broadcasting in SD for a minimum period of ten years. By giving up the encryption the broadcasting groups lose the basis for charging cable network operators and operators of other transmission paths fees for broadcasting in SD. At the same time the basis for implementing signal protection restrictions will be eliminated.

In the merger proceedings Liberty Global (Unitymedia) and Kabel Baden-Württemberg, the cable network operator Unitymedia had already undertaken a similar commitment to give up basic encryption from January 2013 onwards (cf. Bundeskartellamt press release of 15 December 2011). The merger could subsequently be cleared.

Andreas Mundt: "The commitment of the private broadcasting groups to maintain unencrypted SD broadcasts enables TV viewers to continue to receive digital free TV in the next few years without signal protection restrictions and without any additional charges."