ACM clears acquisition of Telegraaf Media Groep by Mediahuis
The Netherlands Authority for Consumers and Markets (ACM) has cleared the acquisition of the Telegraaf Media Groep (TMG) by Belgian publishing company Mediahuis. The acquisition of TMG would result in the formation of one publishing company behind several major Dutch national newspapers: NRC Handelsblad, nrc.next and De Telegraaf. The two parties also have several regional papers, free local papers, magazines and websites. They sell advertising space in these papers and on online media. Following a study, ACM comes to the conclusion that there are no significant consequences for the competition on all these platforms.
Chris Fonteijn, chairman of the Board of ACM, explains: “The acquisition of TMG by Mediahuis does not have consequences for the papers. The newspapers will continue to be available. We are seeing significant shifts in the media industry: readers are increasingly opting for online media. This bears hard on the circulation of newspapers. Advertisers choose more and more often for online advertisements. Our focus shifts more and more to online media as well.”
Nothing will change for the reader
Newspapers De Telegraaf and NRC Handelsblad/nrc.next have their own readers. It is unlikely that readers would switch between these national papers. In addition, the regional papers of both parties are not each other’s competitors nor are they competitors of their national counterparts. The newspaper readers will keep the same options after the acquisition.
Advertisers have plenty of alternatives
De Telegraaf and Algemeen Dagblad (part of media company De Persgroep) compete with each other when placing a newspaper advertisement. Because of this acquisition, little changes as companies choose a particular newspaper advertisement to suit a specific reader group. De Persgroep remains a formidable competitor regarding advertising options in newspapers. This applies to both national and regional newspapers.
Online media becomes increasingly important for readers and advertisers
Advertising budgets of companies are increasingly often spent on online advertisements, for example through Google or Facebook. In the Netherlands, approximately EUR 1.5 billion is spent on online advertisements. The advertising revenues from the traditional media are declining in the last few years. As a result, the influence of newspapers on the advertising market becomes increasingly smaller.
Merger and acquisition assessment by ACM
ACM assesses in advance whether companies that wish to acquire or merge with another company do not gain too much market power. By doing so, ACM prevents large companies from emerging that could abuse their dominant position. In this way, ACM protects consumers and competitors.