NMa: Imposes fines for failing to make timely notification of acquisition

The Netherlands Competition Authority (NMa) has imposed two fines of EUR 17.500 each on Airfield Holding B.V. (owner of Canal+ N.V.) and Chello Programming B.V. (formerly UPC Programming B.V.) for failing to make timely notification of an acquisition towards the end of 2004.

At that time, UPC acquired an undertaking from Airfield, which was active in the field of pay television. On signing the acquisition agreement, UPC received authority over the undertaking. It was only after concluding this agreement that parties notified the NMa of the acquisition.

On the basis of the Competition Act, it is prohibited to carry through an acquisition prior to notification of the intended takeover with the NMa. Through such advance regulation, it is prevented that competition in a market is affected before the NMa has had the opportunity to assess whether the acquisition results in a possible dominant position or strengthening thereof. In 2005, the NMa issued a license for the acquisition to the undertakings involved.

Undertakings are under the obligation to notify the NMa of an acquisition (or merger/ joint venture), if at least two of the undertakings involved have achieved a turnover of at least EUR 30 million and if all parties involved have achieved a joint turnover of at least EUR 113.450.000.