The European Commission has re-approved the acquisition of Ziggo by Liberty Global, subject to conditions. The merger between both companies was notified to the Commission in March 2014 and approved in October 2014 but was annulled by the General Court in October 2017 for procedural reasons.
In 2014, the Commission had concerns that the merger would have hindered competition by removing two close competitors and important competitive forces in the Dutch market for the wholesale of premium pay TV film channels. In order to maintain effective competition for the wholesale of premium pay TV film channels in the Netherlands, Liberty Global committed to divest its Film1 channel to a third-party purchaser. The channel was divested to Sony.
In its new assessment, the Commission confirmed its concerns that the merger would have increased Liberty Global’s negotiating power with TV channel broadcasters, hindering innovation in the delivery of OTT services.
The renewed approval is therefore again conditional upon the implementation of a commitments package, including the termination and future exclusion of clauses in channel carriage agreements that limit broadcasters’ ability to offer their channels and content over the internet, and an agreement not to re-acquire the Film1 channel from Sony.
Analyst Comment
This is part of a significant re-alignment between Vodafone & Liberty Global. (Liberty Global Announces Sale of Some European Businesses to Vodafone) (BR)
