NMa To Investigate Merger Liberty - Casema Further

The Netherlands Competition Authority (NMa) has decided that an in-depth investigation is necessary into the proposed takeover of Casema Holding B.V. by the American cable and media company, Liberty Media Corporation. At present, Liberty Media controls UPC, which has approximately 40% of all cable connections in the Netherlands. As a result of the takeover of Casema, Liberty Media would acquire approximately 60% of the cable connections. The largest competitor, Essent Kabelcom, has approximately 25% of cable connections. In addition, Liberty is also active as a provider of TV programmes and programme packages and has the technology for the decoder required to receive digital TV.

The investigation will have to provide clarity, for instance, with regard to the consequences of the takeover of Casema for the range of broadcasting stations on offer to consumers and the providers of TV programmes. In its investigation during the notification phase, NMa came to the conclusion that the takeover could result in a dominant position, which could seriously restrain competition on the Dutch market. A licence is therefore required for the merger. NMa is required to decide whether or not the merger is permissible within 13 weeks after submission of the application for a licence.

Only one cable company is active in every region of the Netherlands. Consequently, consumers cannot choose between various cable operators. For the time being, NMa has concluded that the effect that Liberty, with 60% of all cable connections, could have on the range of broadcasting stations on offer in the Netherlands is too great. This could result in a more limited or more expensive range of stations on offer to consumers and more limited coverage for certain broadcasting stations. For programme providers, wide coverage is of considerable importance in relation to the advertising income necessary to finance programmes. NMa's concerns are strengthened by the other activities of Liberty, which not only operates cable networks, but is also active as a provider of TV programmes and programme packages and has the technology for receiving digital TV.