NMa: Further Investigation Required into Acquisition of Canal+ by UPC

Following an initial investigation, the Netherlands Competition Authority (NMa) has concluded that a dominant position may arise or be strengthened by the acquisition of Canal+ by the cable company, UPC. This may restrict competition. For this reason, NMa has notified both parties that a licence is required for the realisation of this concentration. NMa deemed it necessary to conduct a further investigation into the consequences of the proposed takeover. UPC offers television for the market for subscription television and for the purchase of rights to the top segment of films. Canal+ is by far the largest provider of subscription television, broadband internet and telephone services through its cable network. in the Netherlands.

Following an initial investigation, NMa concluded that the takeover could result in a situation where UPC, as the operator of a relatively large cable network and, after the takeover, almost a monopolist on the market for subscription television, could prevent other (new) providers of subscription television from developing activities on this market. The possibility cannot be excluded that UPC’s procurement position on the market for films in the top segment, strengthened by the takeover, would contribute to this. In addition, UPC may have an incentive not to offer Canal+’s programmes or to do so subject to unfavourable conditions to competitive infrastructure providers within UPC’s coverage area (satellite, wireless, xDSL). Both effects may restrict competition on the market for subscription television and limit consumers’ freedom of choice.

If UPC and Canal+ decide to apply for a licence, NMa will conduct a further investigation into, for instance, the development of competing infrastructures, such as satellite, wireless and xDSL technologies, as well as the competitive opportunities for other (new) providers of subscription television in the Netherlands. If UPC and Canal+ make proposals during NMa’s investigation within the framework of the application for a licence, which might possibly remove the competition concerns, NMa will include these proposals in its investigation.