The German monopoly commission Bundeskartellamt plans to thwart the joint online video platform from RTL and Pro7Sat.1.
The authority had already informed the companies in February of the main reasons for a possible prohibition. The comments submitted by the broadcasters on the Bundeskartellamt’s preliminary assessment of the project from February could not dispel the authority’s competition concerns.
In particular, the companies were not prepared to make fundamental changes to the original concept of their project. The companies have still not offered to further open up the platform technically and to other television channels.
Andreas Mundt, president of the Bundeskartellamt, said in a statement: “The creation of the joint platform would further strengthen the dominant duopoly between the two broadcasting groups on the market for TV advertising. We have given careful attention to the potential advantages of a new video-on-demand platform However, in its intended form the project provides no guarantee that it will outweigh the expected disadvantages for competition.”
The decision is not yet final. The companies have a month to appeal the decision.