Case M.7194-Liberty Global/ Corelio/ W&W
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EUROPEAN COMMISSION DG Competition CASE M.7194-LIBERTY GLOBAL/ CORELIO/ W&W/ DE VIJVER MEDIA (Only the English text is authentic) MERGER PROCEDURE REGULATION (EC) 139/2004 Article 8(2) Regulation (EC) 139/2004 Date: 24/02/2015 This text is made available for information purposes only. A summary of this decision is published in all EU languages in the Official Journal of the European Union. Parts of this text have been edited to ensure that confidential information is not disclosed; those parts are enclosed in square brackets and marked with an asterisk. EN EN EUROPEAN COMMISSION Brussels, 24.2.2015 C(2015) 996 final Public Version COMMISSION DECISION of 24.2.2015 declaring a concentration to be compatible with the internal market and the EEA Agreement (Case M.7194 – LIBERTY GLOBAL/CORELIO/W&W/DE VIJVER MEDIA) (Only the English text is authentic) TABLE OF CONTENTS 1. INTRODUCTION........................................................................................................ 5 2. THE TRANSACTION ................................................................................................. 6 3. UNION DIMENSION ................................................................................................. 7 4. RELEVANT MARKETS............................................................................................. 7 4.1. Introduction – the TV value chain and the Parties’ activities ...................................... 7 4.1.1. Production of TV content ............................................................................................. 8 4.1.2. Licensing of broadcasting rights relating to TV content .............................................. 9 4.1.3. Wholesale supply of TV channels .............................................................................. 10 4.1.4. Retail provision of TV services to end users ............................................................. 12 4.1.5. Sale of advertising on TV channels ........................................................................... 12 4.2. Production and licensing of broadcasting rights for TV content ............................... 13 4.2.1. Product market ........................................................................................................... 13 4.2.1.1. Previous Commission decisions ................................................................................. 13 4.2.1.2. Notifying Parties’ view .............................................................................................. 14 4.2.1.3. The Commission’s assessment ................................................................................... 14 4.2.2. Geographic market ..................................................................................................... 16 4.2.2.1. Previous Commission decisions ................................................................................. 16 4.2.2.2. Notifying Parties’ view .............................................................................................. 16 4.2.2.3. The Commission’s assessment ................................................................................... 16 4.3. Wholesale supply of TV channels .............................................................................. 17 4.3.1. Product market ........................................................................................................... 17 4.3.1.1. Previous Commission decisions ................................................................................. 17 4.3.1.2. Notifying Parties’ view .............................................................................................. 19 4.3.1.3. The Commission’s assessment ................................................................................... 19 4.3.2. Geographic market ..................................................................................................... 22 4.3.2.1. Previous decisions of the Commission and of the BCA ............................................ 22 4.3.2.2. Notifying Parties’ view .............................................................................................. 22 4.3.2.3. The Commission’s assessment ................................................................................... 22 4.4. Retail provision of TV services to end users ............................................................. 23 4.4.1. Product market ........................................................................................................... 23 4.4.1.1. Previous decisions of the Commission, the BCA and the Belgian regulators ........... 23 4.4.1.2. Notifying Parties’ view .............................................................................................. 24 4.4.1.3. The Commission’s assessment ................................................................................... 24 4.4.2. Geographic market ..................................................................................................... 27 4.4.2.1. Previous decisions of the Commission, the BCA and the Belgian regulators ........... 27 EN 2 EN 4.4.2.2. Notifying Parties’ view .............................................................................................. 28 4.4.2.3. The Commission’s assessment ................................................................................... 28 4.5. Sale of advertising space on TV channels .................................................................. 29 4.5.1. Product market ........................................................................................................... 29 4.5.1.1. Previous decisions of the Commission and the BCA................................................. 29 4.5.1.2. Notifying Parties’ view .............................................................................................. 29 4.5.1.3. The Commission’s assessment ................................................................................... 29 4.5.2. Geographic market ..................................................................................................... 30 4.5.2.1. Previous Commission decisions ................................................................................. 30 4.5.2.2. Notifying Parties’ view .............................................................................................. 30 4.5.2.3. The Commission’s assessment ................................................................................... 30 4.6. Conclusion on market definition ................................................................................ 30 5. COMPETITIVE ASSESSMENT............................................................................... 31 5.1. The market for the licensing of broadcasting rights for TV content (demand side) .. 33 5.2. Input foreclosure of individual TV content towards TV broadcasters and TV distributors.................................................................................................................. 34 5.2.1. Input foreclosure of individual TV content towards TV broadcasters ....................... 35 5.2.2. Input foreclosure of individual TV content towards TV distributors ........................ 37 5.2.3. Conclusion on input foreclosure of TV content towards TV broadcasters and TV distributors.................................................................................................................. 39 5.3. The markets for the sale of TV advertising space on TV channels and for the retail provision of TV services to end users ........................................................................ 39 5.4. The markets for the wholesale supply of FTA/basic pay TV channels and for the retail provision of TV services to end users ............................................................... 42 5.4.1. Input foreclosure (restricting access to De Vijver Media’s TV channels) ................. 43 5.4.1.1. Market power and importance of Vier and Vijf ......................................................... 44 5.4.1.2. Ability to engage in input foreclosure ........................................................................ 55 5.4.1.3. Incentive to engage in input foreclosure .................................................................... 61 5.4.1.4. Effects of input foreclosure ........................................................................................ 74 5.4.1.5. Conclusion on input foreclosure ................................................................................ 83 5.4.2. Customer foreclosure (restricting access to Telenet’s cable network) ....................... 84 5.4.2.1. Introduction ................................................................................................................ 84 5.4.2.2. Market power and the importance of Telenet’s cable network .................................. 84 5.4.2.3. Ability to engage in customer foreclosure ................................................................. 88 5.4.2.4. Incentive to engage in customer foreclosure .............................................................. 90 5.4.2.5. Effects of partial customer foreclosure ...................................................................... 99 5.4.2.6. Input foreclosure and customer foreclosure are not conflicting theories of harm in this case .................................................................................................................... 100 EN 3 EN 5.4.3. Other non-coordinated effects .................................................................................