Commitment made by OMS to expire, ACM sees no reason for extension
The Netherlands Authority for Consumer and Markets (ACM) will not extend the commitment made by Dutch media company One Media Sales B.V. (OMS) regarding its discount scheme when selling radio advertising spots. This commitment entered into force on January 1, 2020, and is set to expire on January 1, 2024. Due to changed market conditions, ACM sees no reason to extend the commitment decision.
What is this case about?
Media company OMS is part of Talpa Radio and RadioCorp. OMS is the largest supplier of radio advertising spots in the Netherlands. It sells advertising spots on popular commercial radio stations in the Netherlands such as Radio 538, Sky Radio, and 100%NL. At the time, OMS made the commitment to adjust its discount scheme for advertising posts, following an ACM investigation into OMS’s practices and market position. The commitment meant that OMS could no longer offer advertisers and media agencies any discounts based on their relative spending on OMS-affiliated radio stations. At the time, OMS’s discount scheme created anticompetitive risks for other market participants, because of the risk that advertisers and media agencies would buy fewer advertising spots from other radio stations than from OMS-affiliated radio stations. That, in turn, created the risk that these radio stations would have to cease operations, thereby decreasing the selection of radio stations for listeners, and clearing the way for the prices of radio advertising spots to go up. The commitment decision had been made for a period of two years, and was subsequently extended through January 1, 2024.
Why did ACM decide not to extend the commitment decision?
ACM has conducted a market study into the trends and developments on the radio market, and into OMS’s current market position. Although OMS still is a strong competitor, ACM also sees that OMS faces more competitive pressure from other market participants. For example, the July 2023 auction of radio frequency licenses has led to the entry of new radio stations JOE and Radio4All. Following the market study, ACM comes to the conclusion that the market conditions have changed in a such a way that OMS’s commitment no longer needs to be extended. However, ACM will continue to keep a close watch on the market for radio advertising spots.
See also
31-12-2023 Extension of the commitment decision regarding One Media Sales (in Dutch)