Opposition to the merger of TF1 with merger could lead to the matter being decided by the European Commission.
In a story first reported by Les Echos, Iliad, which owns the alternative telco Free, is arguing the European Commission’s competition department should be brought in to examine the transaction. The pay-TV platform Canal+ is considering doing the same.
Already, Free has asked for the French competition authority to justify its actions in declaring it “considers itself competent” to handle the matter domestically. It argues that while the authority is conducting a series of market tests, because the major decisions will be taken by international groups Bouygues and RTL Group it should be heard from the European stage.
While the French competition authority argues that the intervention has come at a relatively late stage, the case should be handled within France, the involvement of the European Commission would mean the close involvement of the European legislature.
Under the proposals, announced in July, Bouygues and RTL would own 30% and 16% respectively of the new group, following the acquisition of an 11% stake by Bouygues from RTL for €641 million. Bouygues will have exclusive control of the merged company, acting with RTL as a strategic shareholder.
