Spain

[ES] CNMC extends conditions for Antena 3 and La Sexta merger

IRIS 2015-8:1/13

Enric Enrich

Enrich Advocats, Barcelona

The National Commission for Markets and Competition (Comisión Nacional de los Mercados y la Competencia, CNMC) has extended for two years the conditions by which the merger agreement between Antena 3 and La Sexta was authorised by the Council of Ministers on 24 August 2012 (see IRIS 2012-8/21).

The merger of the two broadcasters was authorised for an initial term of three years, subject to compliance with certain conditions relating to television advertising, the acquisition of audiovisual content and periodic benefit obligations of information, and free TV. After this period, the CNMC would assess whether there had been a significant change in the markets affected by the merger, and whether to maintain, adjust, or withdraw the conditions for a further period of two years.

The competition authorities at the time of the merger determined that it reinforced the market power of ATRESMEDIA in the TV advertising market, and favoured creating a de facto duopoly between ATRESMEDIA and MEDIASET (the two groups control more than 85% of advertising investment).

The CNMC believes that the competitive position of the television advertising market in Spain has not improved since the merger was authorised. In particular, the extension of Antena 3’s advertising policies to La Sexta with packaging channels and the negotiation of advertising prices has increased the competitive pressure.

Furthermore, the reduction in the number of channels broadcast by Atresmedia has not influenced their ratios of audience and advertising investment. To a large extent, competition in these markets is determined by the competitive situation of the TV advertising market.