Background
Canal+, Capital Communications CDPQ (CDPQ) and Bank America International acquired joint control over NC NumériCable Holding (NC). Canal+ is a French company active mainly in paid television broadcasting, distribution of television services by cable and satellite, and the distribution and production of programming. Bank America forms part of the group Bank America Corporation which provides diverse financial products and services. CDPQ’s activity is to invest in companies operating in all areas related to communications. NC operates cable television networks in France through controlled subsidiaries.
Assessment
In the Commission’s view, on the pay television market in France or in the French speaking territories in Europe, the operation did not have any anti-competitive effects. Bank America and CDPQ are not present in the relevant markets, the transaction simply improved the financial position of the joint venture, and there will be no horizontal or vertical overlap between the parties.
Pursuant to Article 2(4) of the Merger Regulation, the Commission also examined the possible anti-competitive co-ordination between the parent companies in Spain for the wholesale supply of films and sports channels for retail pay TV. Bank America and CDPQ have controlling interests in Cable Europe which, through the operation of cable networks, is a future significant competitor to Sogecable (Canal+ Spain). The Commission concluded that, while there was no horizontal co-ordination, there was the risk of co-ordination between Sogecable and Cable Europe in the Spanish market in their vertical relation.
Following the Commission’s objections, Canal+ agreed that any negotiations with Spanish cable operators for television programming over which Canal+ has Spanish distribution rights will be conducted in a fair and non-discriminatory manner. Sogecable undertook not to discriminate among cable operators in Spain for the distribution of theme channels or any other programmes over which it has distribution rights for Spain. The Commission concluded that the above undertakings were sufficient to remove the competition concerns and render the concentration compatible with the common market. (Case No. IV/M.1327, decision of 3.12.98)
