Decision Nº M/04/011 from Competition and Consumer Protection Commission, 2004-03-16

• Jurisdiction: Ireland
• Parties: Liberty Media,Princes Holdings
• Date: 16 March 2004
• Decision Date: 16 March 2004
• Status: Preliminary investigation (Phase 1)
• Court: Competition and Consumer Protection Commission (Ireland)
• Decision Number: M/04/011

1

Determination No. M/04/011 of the Competition Authority, dated 16th

March 2004, under Section 21 ofthe Competition Act, 2002

Notification No. M/04/011 – Liberty Media Corporation Proposed

Acquisition of Princes Holdings Limited from Independent

Communications (International) Limited

Introduction

1. On 18th February 2004, the Competition Authority, in accordance with Section

18 (1) of the Competition Act, 2002, (“the Act”) was notified, on a mandatory

basis, of a proposal whereby Liberty Media Corporation (“Liberty”) would

acquire half of the issued shares of Princes Holdings Limited (“PHL”) from

Independent Communications (International) Limited (“Independent”),

resulting in Liberty having the sole control of PHL. The Authority, in

accordance with s 23(1)(b) of the Act, notified the parties that it considers

the transaction to be a media merger.

The Parties

2. Liberty, through three of its subsidiaries, and Independent equally hold the

issued shares of PHL. Additionally, Liberty has a controlling interest in a

number of companies that make sales into Ireland.

- OpenTV Corp (“OpenTV”): this company provides interactive platform

software and solutions to cable, satellite and terrestrial network

operators. It also manufactures set-top boxes that enable Internet

access, streaming video and customised information via a traditional

television. In Ireland, OpenTV supplies middleware for use in digital

set-top boxes in the operation of interactive television. Both Chorus

and Sky (a provider of direct to home (“DTH”) satellite television

service) use the OpenTV middleware. OpenTV does not have a branch

or office in Ireland.

- Discovery Communications Inc. (“Discovery”): Liberty holds a 50%

joint controlling interest in Discovery. Discovery produces a number of

television channels that are supplied to cable, DTH satellite and digital

terrestrial television operators.

- QVC, Inc. (“QVC”): QVC retails a wide range of consumer products

mainly through televised-shopping programmes, but also through the

Internet and directly through outlet stores. Cable, DTH satellite, and

multi-point microwave distribution systems (“MMDS”) operators in

Ireland carry the QVC home shopping channels. QVC has no branch or

office in Ireland.

3. PHL owns 100% of Chorus Communication Limited (“Chorus”). Chorus is

principally active in the provision of digital and analogue television

retransmission services (via cable and MMDS), and telecommunications

services including voice telephony and high speed Internet. Chorus provides

TV programme distribution services to [] customers, telephony services to

about [] customers, and data services to about [] customers.