Regulation and Competition Issues in Broadcasting in the light of Convergence 1998 The OECD Competition Committee debated regulation and competition issues in broadcasting in the light of convergence in October 1998. This document includes an executive summary, an analytical note by Mr. Darryl Biggar for the OECD and submissions from Australia, Canada, the Czech Republic, the European Commission, Finland, Italy, Japan, Korea, Mexico, Norway, the Slovak Republic, Sweden, Switzerland, the United Kingdom and the United States, as well as an aide-memoire of the discussion. Digitalisation of information content and communication channels is bringing countries closer to the point where any information or entertainment content can be delivered down any communication channel. This convergence is breaking down the dividing lines between broadcasting, information technology and the media and has lead to an unprecedented wave of mergers. This roundtable explored the implications of these developments for broadcasting regulation and competition enforcement. The technological processes of convergence are likely to have parallels in convergence of regulatory regimes. Broadcasting forms, such as television, that once received special treatment are increasingly regulated like other media. Competition concerns focus on access to the high bandwidth link to consumers (including the customer premises equipment or "set top box") and on access to key content, such as certain sporting events. Vertical arrangements or mergers between holders of these two types of bottlenecks and other firms in the broadcasting chain raise interesting and difficult challenges. How competition and regulatory authorities manage these bottlenecks is decisive for determining the degree of competition that will emerge in the long-run. Media Mergers (2003) Merger Review in Emerging High Innovation Markets (2003) The Objectives of Competition Law and Policy (2003) Competition Policy and Film Distribution (1995) Unclassified DAFFE/CLP(99)1 Organisation de Coopération et de Développement Economiques OLIS : 26-Apr-1999 Organisation for Economic Co-operation and Development Dist. : 28-Apr-1999 __________________________________________________________________________________________ English text only DIRECTORATE FOR FINANCIAL, FISCAL AND ENTERPRISE AFFAIRS Unclassified DAFFE/CLP(99)1 COMMITTEE ON COMPETITION LAW AND POLICY REGULATION AND COMPETITION ISSUES IN BROADCASTING IN THE LIGHT OF CONVERGENCE English text only 77265 Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format DAFFE/CLP(99)1 FOREWORD This document comprises proceedings in the original languages of a Roundtable on Regulation and Competition Issues in Broadcasting in the light of convergence which was held by the Working Party n°2 of the Committee on Competition Law and Policy in October 1998. This compilation, which is one of several published in a series named “Competition Policy Roundtables”, is issued to bring information on this topic to the attention of a wider audience. PRÉFACE Ce document rassemble la documentation dans la langue d’origine dans laquelle elle a été soumise, relative à une table ronde sur les questions de concurrence et de réglementation de l’audiovisuel dans le contexte de la convergence qui s’est tenue en octobre 1998 dans le cadre du Groupe de travail n° 2 du Comité du droit et de la politique de la concurrence. Cette compilation qui fait partie de la série intitulée “les tables rondes sur la politique de la concurrence” est diffusée pour porter à la connaissance d’un large public, les éléments d’information qui ont été réunis à cette occasion. Visit our Internet Site -- Consultez notre site Internet http://www.oecd.org/daf/clp OECD 1999 2 DAFFE/CLP(99)1 OTHER TITLES SERIES ROUNDTABLES ON COMPETITION POLICY 1. Competition Policy and Environment (Roundtable in May 1995, published in 1996) OCDE/GD(96)22 2. Failing Firm Defence (Roundtable in May 1995, published in 1996) OCDE/GD(96)23 3. Competition Policy and Film Distribution (Roundtable in November 1995, published in 1996) OCDE/GD(96)60 4. Competition Policy and Efficiency Claims in Horizontal Agreements (Roundtable in November 1995, published in 1996) OCDE/GD(96)65 5. The Essential Facilities Concept (Roundtable in February 1996, published in 1996) OCDE/GD(96)113 6. Competition in Telecommunications (Roundtable in November 1995, published in 1996) OCDE/GD(96)114 7. The Reform of International Satellite Organisations (Roundtable in November 1995, published in 1996) OCDE/GD(96)123 8. Abuse of Dominance and Monopolisation (Roundtable in February 1996, published in 1996) OCDE/GD(96)131 9. Application of Competition Policy to High Tech Markets (Roundtable in April 1996, published in 1997) OCDE/GD(97)44 10. General Cartel Bans: Criteria for Exemption for Small and Medium-sized Enterprises (Roundtable in April 1996, published in 1997) OCDE/GD(97)53 11. Competition Issues related to Sports (Roundtable in October 1996, published in 1997) OCDE/GD(97)128 12. Application of Competition Policy to the Electricity Sector (Roundtable in October 1996, published in 1997) OCDE/GD(97)132 13. Judicial Enforcement of Competition Law (Roundtable in October 1996, published in 1997) OCDE/GD(97)200 3 DAFFE/CLP(99)1 14. Resale Price Maintenance (Roundtable in February 1997, published in 1997) OCDE/GD(97)229 15. Railways: Structure, Regulation and Competition Policy (Roundtable in October 1997, published in 1998) DAFFE/CLP(98)1 16. Competition Policy and International Airport Services (Roundtable in June 1997, published in 1998) DAFFE/CLP(98)3 17. Enhancing the Role of Competition in the Regulation of Banks (Roundtable in February 1998, published in 1998) DAFFE/CLP(98)16 18. Competitition Policy and Intellectual Property Rights (Roundtable in October 1997, published in 1998) DAFFE/CLP(98)18 19. Competition and Related Regulation Issues in the Insurance Industry (Roundtable in June 1998, published in 1998) DAFFE/CLP(98)20 Available on our Web Site -- Disponible sur notre site Internet http://www.oecd.org/daf/clp 4 DAFFE/CLP(99)1 TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................................... 7 NOTE DE SYNTHESE.............................................................................................................................. 19 BACKGROUND NOTE............................................................................................................................. 31 NOTE DE REFERENCE ........................................................................................................................... 95 NATIONAL CONTRIBUTIONS Australia.................................................................................................................................... 165 Canada ...................................................................................................................................... 179 Czech Republic ......................................................................................................................... 189 Finland ...................................................................................................................................... 193 Italy ........................................................................................................................................... 201 Japan.......................................................................................................................................... 209 Korea......................................................................................................................................... 215 Mexico ...................................................................................................................................... 225 Norway...................................................................................................................................... 233 Suisse ........................................................................................................................................ 243 Sweden ...................................................................................................................................... 247 United Kingdom........................................................................................................................ 257 United States ............................................................................................................................. 271 Commission européenne........................................................................................................... 283 European Commission, DGIV .................................................................................................. 293 European Commission, DGX ................................................................................................... 297 Slovak Republic ........................................................................................................................ 307 AIDE MEMOIRE OF THE DISCUSSION ............................................................................................. 315 AIDE-MÉMOIRE DE LA DISCUSSION ............................................................................................... 333 5 DAFFE/CLP(99)1 6 DAFFE/CLP(99)1 EXECUTIVE SUMMARY Note by the Secretariat In the light of the written submissions, the background