Competition Commission report on UK broadcast monopoly

Competition Commission report (several PDF files) on Macquarie's acquisition of National Grid Wireless, which would create a quasi-monopoly in UK terrestrial television and national radio broadcasting infrastructure.

The Competition Commission will consider detailed proposals for behavioural remedies which effectively establish a new regulatory agency (described as similar to the ITV CRR regime). But the conclusion is that:

10.92 Although the package of behavioural remedies has been specified in significant detail by the parties, further detailed work is required. There are a number of points to resolve in order for us to be confident that a package of behavioural remedies will be effective [...]. It is possible that this work will reveal flaws in the effectiveness of the proposed package which cannot be resolved.

10.93 If the parties are unable to propose a satisfactory package of behavioural remedies then we will require the parties to implement the divestiture of NGW’s entire MTS/NA business [...]

The report also seems to suggest that Ofcom might want, or perhaps ought, to impose price controls under the Communications Act 2003.

For further information or advice please contact Franck Latrémolière.

Filed under Competition Commission, Media.

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