Decision Nº M/03/033 from Competition and Consumer Protection Commission, 2004-02-23

• Court: Competition and Consumer Protection Commission (Ireland)
• Parties: FM104,Scottish Radio Holdings
• Decision Number: M/03/033
• Decision Date: 23 February 2004
• Status: Cleared with conditions (Phase 2)
• Date: 23 February 2004

5th February 2004

NEWS RELEASE

The Competition Authority attaches conditions to the

purchase of FM 104 by Scottish Radio Holdings

The Competition Authority has today, 5th February, announced its determination

that the proposed acquisition of Capital Radio Productions (trading as FM 104)

by Scottish Radio Holdings may be put into effect subject to a number of

conditions.

As this is a media merger under the Competition Act 2002, the matter is now

referred to the Minister for Enterprise, Trade & Employment for independent

review. While the Competition Authority must make its determination based on

competition issues the Minister may make independent findings based on

separate, non-competition, criteria. If the Minister makes no order within 30

days the determination of the Authority is final.

Determination of The Competition Authority (5th February 2004)

The Authority, in accordance with Section 22(3)(c) of the Competition Act, 2002,

has determined that the result of the proposed acquisition will not substantially

lessen competition in markets for goods and services in the State and may be

put into effect subject to the Parties complying with the following conditions:

1. Following completion of the transaction the Parties:

(a) shall divest all ownership interests in Newstalk 106 FM to a buyer

agreeable to The Competition Authority before 31st December 2004

(b) shall not participate on the board of News 106 Limited

(c) shall not vote in respect of or participate in the operations of the

business of Newstalk 106; and

(d) if the ownership interests in Newstalk 106 are not divested by 31st

December 2004 ownership interests shall be transferred to a trustee

nominated by the parties and subject to the approval of the

Authority

2. FM 104 will not renew the cu rrent sales agency contract with Beat FM

3. FM 104 will cease any participation in advertising sales as part of

Independent Radio Sales (IRS)

4. The Parties shall inform the Authority in writing w ithin ten days of the

completion of each of the conditions

5. The acquisition must be put into effect within 12 months from the date of

this determination

The Parties involved in the transaction

Scottish Radio Holdings (SRH) is a media group whose activities, through its

subsidiaries, include radio broadcasting and publishing in the United Kingdom

and the Republic of Ireland. SRH owns and controls Radio Ireland Limited

which trades as Today FM, the only independent national radio station in

Ireland.

Cont/…