Belgian Competition Council Amends Condition Imposed on Telenet's Acquisition of Canal+
In a decision of 29 November 2010, the Belgian Competition Council amended a condition that was imposed in 2003 on cable network operator Telenet's acquisition of pay-TV provider Canal+. The condition in question essentially required Telenet to offer its pay-TV content to competing network operators under certain conditions. This condition was intended to prevent foreclosure of competing network operators.
On 25 March 2008, the Competition Council had already granted a request by Telenet to amend this condition in such a way that Telenet would no longer be required to offer competing network operators Telenet's TV broadcasting rights for the upcoming Belgian football seasons (See, this Newsletter, Volume 2008, No. 4). However, on 22 June 2009, this decision was annulled on appeal by the Brussels Court of Appeal. In particular, the Court held that the Competition Council failed to properly examine whether Telenet's possible acquisition of exclusive football TV broadcasting rights would, in the absence of the must-offer condition, create or strengthen Telenet's dominant position.
Following this judgment, Telenet made a new request to the Competition Council to review the condition in question. Following an investigation by the College of Competition Prosecutors and after hearing interested third parties, the Competition Council has again amended this condition in its decision of 29 November 2010, this time requiring Telenet to offer its football TV broadcasting rights to competing network operators only insofar as Telenet acquires all live TV broadcasting rights for the Belgian football competition at the upcoming auction for these rights. While acknowledging that the broadcasting markets are clearly in full evolution, the Competition Council found that there were not yet sufficient reasons to simply abolish the condition imposed on Telenet in 2003. According to the Competition Council, because of the strong position of Telenet on the television market in Flanders and the substantial value that the football broadcasting rights continue to have on the market, potential exclusionary effects may still occur should Telenet obtain the live broadcasting rights exclusively.
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