The French competition authority says the proposed merger of commercial broadcasters Groupe TF1 and Groupe M6 raises significant competition concerns.
Le Autorité de la Concurrence has published its report ahead of a final decision by the organisation’s board.
A joint statement issued by Bouygues, it’s subsidiary TF1, and M6-backers RTL Group said the authority’s investigating teams raised a number of significant competition concerns, in particular the merger’s impact on the advertising market.
“The nature and scope of the remedies required in the report of the case team would render the parties’ proposal irrelevant, in which case the parties would withdraw it.”
The parties say they intend to maintain their original proposal and will issue a full response in the next three weeks.
Under the proposals, 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.
Already, the merger has resulted in the selloff of TF1 Series Films, Gulli and 6TER to allay competition concerns.
Hearings are due to take place on the 5 and 6 September.
