Bundeskartellamt looks into KDG contracts

The German monopoly commission Bundeskartellamt has launched an investigation into the distribution contracts of Kabel Deutschland KDG with thematic channels, according to a report in Focus magazine. The action is being undertaken following a complaint from the small cable operator Wilhem-Tel, which announced that it had signed a distribution contract with the German weather channel Deutsche Wetterfernsehen.

Following this announcement, the operator has suspended payments to the channel for a period of five months, thereby almost leading the channel to close down.

When KDG signs distribution agreements with smaller channels, it demands total exclusivity in its own service area. With over 650,000 subscribers, the operator is the largest provider of (low) pay bouquets.

With little or no alternatives, smaller channels cannot afford to bypass KDG and have to agree to such exclusivity clauses.