--ProSiebenSat.1, RTL to appeal antitrust stance on joint platform

Internet Business News
03-21-2011
--ProSiebenSat.1, RTL to appeal antitrust stance on joint platform

INTERNET BUSINESS NEWS-(C)1995-2011 M2 COMMUNICATIONS

21 March 2011 - German media group ProSiebenSat.1 Media AG (ETR:PSM) and RTL Group SA (EBR:RTL) will appeal against the decision of the German Cartel Office to reject their plans for a joint Internet content platform, daily Handelsblatt reported citing sources close to the companies.
A spokesman for RTL told Handelsblatt that filing an appeal against the decision of the German Cartel Office is a serious option. ProSiebenSat.1, on the other hand, is still examining the ruling of the cartel watchdog, the daily wrote.

RTL and ProSiebenSat.1 have four weeks to appeal against the ruling of the Cartel Office.

Last Friday, the German Cartel Office decided against the planned joint Internet content platform of the two companies. According to Andreas Mundt, the president of the Cartel Office, the joint Internet platform would strengthen the companies' dominance on the media market.

However, the decision of the antitrust watchdog was not surprising for RTL and ProSiebenSat.1 as at the beginning of the year the companies received a preliminary stance, according to which the Cartel Office sees antitrust problems in connection with the planned video platform.

According to Handelsblatt, the two companies see the ruling of the Cartel Office as not significantly dramatic but as irritating.

ProSiebenSat.1 and RTL aim to launch a joint Internet content platform for catch-up TV, which will grant customers free access to TV content up to seven days after it appears on TV. The Internet platform is planned to be open to other interested stations and public broadcasters.

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