Decision Nº M/11/038 from Competition and Consumer Protection Commission, 2012-02-24

• Jurisdiction: Ireland
• Parties: Raidió Teilifís Éireann,Teilifís na Gaeilge
• Date: 24 February 2012
• Decision Date: 24 February 2012
• Decision Number: M/11/038
• Court: Commissioner for Environmental Information

M/11/038 – RTÉ/TG4

DETERMINATION OF MERGER NOTIFICATION

M/11/038 -

RTÉ/TG4/JV

Section 21 of the Competition Act 2002

Proposed creation of a joint venture company between RTÉ and TG4

Dated 24 February 2012

Introduction

1. On 7 December 2011, in accordance with section 18 of the Competition

Act 2002 (the “Act”), the Competition Authority (the “Authority”)

received a notification of the proposed creation of a joint venture

company, Multiplex Broadcasting Services N.I. Limited (“JV”), by Raidió

Teilifís Éireann (“RTÉ”) and Teilifís na Gaeilge (“TG4”).

1

Following

completion of the proposed transaction, RTÉ would hold two-thirds of

the shares in the JV and TG4 would hold the remaining one-third.

2. On 7 December 2011, the Authority advised the parties and the

Minister that it considered the proposed transaction to be a media

merger within the meaning of section 23 of the Act.

3. On 5 January 2012 the Authority served two Requirements for Further

Information, on RTÉ and TG4, pursuant to section 20(2) of the Act.

This automatically suspended the procedure for the Authority’s Phase 1

assessment.

4. Upon receipt of the responses to the Requirements for Further

Information, the “appropriate date” (as defined in section 19(6) of the

Act) became 27 January 2012 and the new Phase 1 deadline became

one month from that date.

5. The Authority also requested and received, on an on-going basis,

further information and clarifications from the notifying parties.

6. During the investigation, the Authority sought the views of 12

advertising customers (including advertising agencies) of RTÉ and TG4.

Most of these advertising customers are also customers of other

broadcasters such as TV3, in the State, and UTV and Channel 4, in

Northern Ireland.

7. The Authority also consulted with the Broadcasting Authority of Ireland

(“BAI”), the Commission for Communications Regulation, and the UK

1

Following pre-notification discussions, on 30 May 2011 the Authority advised the parties that it

tentatively considered that, on balance, th e proposed JV was capable of being notified to the

Authority under Part 3 of the Competition Act 2002. No information produced during the Phase 1

review of the notification has caused the Authority to revisit that decision.

M/11/038 – RTÉ/TG4/JV 2

Communications Regulator (“Ofcom”). None of these agencies opposed

the proposed transaction.

8. Having considered all the available information in its possession, the

Authority has concluded that the result of the proposed transaction will

not be to substantially lessen competition in any market for goods or

services in the State.

The Undertakings Involved

RTÉ

9. RTÉ was established (as Radio Éireann) under the Broadcasting

Authority Act 1960 as a public service broadcaster in the State.

Section 114(1)(a) of the Broadcasting Act 2009 (“the 2009 Act)

requires RTÉ to provide a public broadcasting service that “will be

made available to the whole community on the island of Ireland”.

Pursuant to Section 81 of the 2009 Act the board of RTÉ must consist

of twelve members.

2

The RTÉ board is the governing authority of RTÉ.

10. RTÉ operates mainly two free-to-air national television channels, RTÉ

One and RTÉ Two. RTÉ One and RTÉ Two cover sports, movies, news

and general entertainment, predominantly in the English language.

RTÉ estimates that in 2010 the Irish language content of RTÉ One and

RTÉ Two was less than 1% for each channel’s programming schedule.

Based on AC Nielsen data, RTÉ estimates that in 2010 its RTÉ One

channel had a share of approximately 23% of television viewership in

the State while RTÉ Two had a share of approximately 10% of

television viewership in the State.

3

11. RTÉ also sells television advertising airtime and sponsorship on its

television channels and website. RTÉ estimates that in 2010 it received

approximately [50-60]% of the total advertising revenue generated by

television channels – Irish and non-Irish - shown in the State.

12. For the year ending 31 December 2010, RTÉ achieved a worldwide

turnover of approximately €371.6 million (approximately €175 million

accrued from commercial revenue and approximately €195 million

accrued from the licence fee). Approximately 99% of RTÉ’s revenue

was achieved in the State.

TG4

13. TG4 was established (as Teilifís na Gaeilge) under the Broadcasting

Authority Act 2001 as a public service broadcaster in the State.

Section 118(1)(a) of the 2009 Act requires TG4 to provide a public

broadcasting service that “will be made available to the whole

community on the island of Ireland”. Pursuant to Section 81 of the

2

Ten members are appointed by the Government on nomination of the Minister; one member is a

member of staff of RTÉ, appointed by the Government following an election; and, one member is

the director general of RTÉ.

3

This is based on the AC Nielsen Television Audience Measurement Ireland. The share of television

viewership takes into account all viewing including programmes that were recorded for viewing at a

later date other than time of broadcast.