Germany

[DE] BKartA Expresses Concern over Planned ProSieben-Sat.1 and RTL Online Video Platform

IRIS 2011-4:1/19

Peter Matzneller

Institute of European Media Law (EMR), Saarbrücken/Brussels

The Bundeskartellamt (Federal Cartels Office - BKartA) has expressed concern to the television provider ProSiebenSat.1 Media AG and the RTL Deutschland media group in a provisional assessment of their plans to create a joint online video platform.

Following the example of the US video portal “Hulu”, the two companies have, for some time, been developing a business model for digital audiovisual content on the Internet, in order to take into account the changes in consumer behaviour and the increasing convergence of television and the Internet. The initiators of the portal, which is funded by advertising and features programmes of different broadcasters, intend it to include services of other private TV companies and public service broadcasters.

According to the Cartels Office’s provisional assessment, it is likely that the service would harm competition in the national television market on account of the dominant position held by the ProSiebenSat.1 and RTL channels in the German private television market.

Therefore, after an extended evaluation deadline, the BKartA demanded that strict conditions be imposed on the planned online video portal of the two companies, which were unwilling to meet those conditions. Although they said they were prepared, in principle, to operate the platform under certain conditions, they did not consider the commitments required by the BKartA to be acceptable.