Italy OKs La7-Feltrinelli DTT venture
December 27, 2012
From Branislav Pekic in Rome
Italy’s Antitrust Authority has given the green light to Italian national broadcaster La7 and Effe 2005, owned by publishing group Feltrinelli, to set up a new company (Newco) that will launch one or more thematic TV channels on DTT and other distribution platforms.
In its weekly bulletin, the Authority says it has decided not to open an investigation because such an action “would not lead to the creation or strengthening of a dominant position on the relevant market, so as to eliminate competition or reduce it substantially and permanently.”
Newco will dispose of its own resources (financial, personnel and other equipment), enabling it operate independently in the market. It will acquire from DTT transmission capacity from Telecom Italia Media Broadcasting for its future free-to-air TV channel/s. The share capital of Newco will be owned 70 per cent by EFFE 2005 and 30 per cent by La7.
The transaction also involves a non-competition agreement under which the parties committ themselves not to launch digital TV channels in Italy with similar content to that on the Newco channels.