NMa: Casema's TV Rates Are Not Excessive

The subscription rates which Casema charges for its TV packages are not excessive and a dominant position has not been abused. This was ascertained by the Netherlands Competition Authority (NMa) in relation to the period 2000 to 2002 after an extensive investigation at the request of various complainants. They accuse Casema of abusing its monopoly after the cable company increased its prices for TV packages in November 1999 and October 2000.

NMa investigated all the costs and revenues of the TV packages offered by Casema in the Netherlands. The investigation shows that the subscription rate is in reasonable proportion to the economic cost of the TV packages supplied.

Casema introduced optional packages consisting of a package of 17 TV stations and a package of 34 TV stations. These options replaced the earlier package of approximately 31 TV stations. The majority of subscribers opted for the package containing 34 TV stations. In the case of these subscribers, the increase in the number of stations was accompanied in most cases by a price increase.

NMa started its investigation in the summer of 2000 following a complaint by, among others, the municipalities of Wassenaar and Voorburg.