ACM clears acquisition of streaming service Viaplay Nederland by rival streaming service Videoland

The Netherlands Authority for Consumers and Markets (ACM) has cleared the acquisition of streaming service Viaplay Nederland by rival streaming service Videoland, which is part of media company DPG Media. On the basis of its investigation, ACM does not expect the acquisition to have any negative consequences for viewers, the procurement of sports broadcasting rights, and the sale of advertising space.

Addition of Viaplay Nederland’s sports content on Videoland is only temporary

Videoland acquires the sports licenses and subscribers of Viaplay Nederland. This includes the broadcasting rights to sporting events in the Netherlands, for example Formula 1, Premier League matches, PDC Darts, field hockey, and other live sporting events. These licenses have limited terms, and, once these terms have expired, they will be put out to tender again by their owners. For example, Viaplay Nederland’s current license for the Formula 1 broadcasting rights will expire in 2029. After that date, all interested parties can bid on these rights again.

DPG Media is a major competitor in the Dutch media sector with its newspapers, magazines, online news, various commercial radio and television stations, including RTL and the video streaming service Videoland. That is why ACM conducted an investigation into multiple aspects: the procurement of sports broadcasting rights, the distribution of television and video streaming content, the consequences for viewers, and the effects on advertising markets. In addition, ACM held discussions with the Dutch Media Authority (CvdM). The CvdM says that Viaplay Nederland does not position itself as a news platform, which is why it believes that the acquisition’s impact on public opinion will not be significant.

DPG Media’s market share will rise only slightly

Since Viaplay Nederland is a relatively small competitor, and with a specific sports content portfolio, DPG Media’s market share on all markets under investigation will go up slightly. In that context, Viaplay Nederland’s sports content portfolio primarily complements Videoland’s current streaming portfolio, which predominantly consists of films, series, and shows. ACM does not expect any negative consequences for consumers that are interested in watching sports on Viaplay Nederland, including the way in which the sports content is offered. ACM additionally does not expect any negative consequences for sports broadcasting rights holders and telecom companies that distribute television and video streaming content.

Sufficient competition to remain on advertising market after the acquisition

Previous ACM investigations into the DPG-RTL and RTL-Talpa acquisitions revealed that DPG Media (and previously RTL) had a strong position in the market for television advertising space through its subsidiary Ad Alliance. Ad Alliance sells advertising space for DPG Media, but also for other companies.

ACM does not expect DPG’s acquisition of Viaplay to lead to a restriction of competition on the advertising market. Viaplay’s viewer share and advertising offerings on television and video streaming (online) is limited. The investigation reveals that the shift of this advertising space to Ad Alliance does not have any major consequences for the bargaining position of advertisers and sellers of advertising space. Advertisers will continue to have sufficient alternatives for advertising space before and after sporting events.

ACM thus comes to the conclusion that the acquisition will not lead to any significant restriction of competition on the Dutch market or on a part thereof. That is why ACM establishes that the parties involved do not need a license for going through with this acquisition.

ACM’s concentration control: mergers, acquisitions, and joint ventures

With any merger, acquisition, or joint venture, there is a question of whether sufficient competition will remain on that market, right after the concentration as well as in the subsequent years. Competition ensures that products are of high quality, and that they are offered on the market at competitive prices. Competition also promotes innovation. That is why ACM decides in advance whether or not companies are allowed to join forces. ACM assesses whether the markets involved will continue to work well for people and businesses, now and in the future.