The Federal German Cartel Office has ruled out any current possibility for RTL to manage advertising sales for RTLzwei.
The decision follows an in-depth review that spanned over 18 months. RTL proposed the plan in mid-2023, seeking approval to jointly market advertising slots for both commercial free-TV channels. However, the Cartel Office concluded that such a partnership would harm competition and likely lead to higher prices for advertisers.
Andreas Mundt, President of the Cartel Office, emphasised that while media consumption habits are changing, linear television remains dominant in video advertising. “Streaming platforms like Netflix, Amazon Prime and Disney are entering this market, but their influence is not yet sufficient to challenge the advertising power of linear TV. RTLzwei remains a key alternative to leading broadcasters RTL and ProSiebenSat.1,” said Mundt.
The investigation found that a joint sales operation would reduce competition, leaving advertisers with fewer choices and increasing costs. Efforts to justify the plan with potential cost savings or efficiency benefits failed to outweigh the anticipated disadvantages.
The anti-trust authority also considered the broader media landscape, including digital advertising markets. While streaming platforms offer comparable video advertising opportunities, their reach and market significance are still limited. Social media and other digital formats serve distinct purposes and are not seen as direct competitors to television advertising.
During its review, the Cartel Office conducted extensive research. In late 2023, it surveyed major media agencies and 30 large advertisers. In early 2024, it held further discussions with leading media agencies and relevant competitors in both television and online markets. Despite modifications to the proposal, the authority maintained its critical view.
RTL is part of German media company Bertelsmann, which operates a significant advertising network through its Ad Alliance. Despite the name similarity, RTLzwei, however, is a joint venture involving other media companies and is not fully owned by RTL. This structural independence means that agreements between RTL and RTLzwei are subject to antitrust scrutiny.
The decision means that RTLzwei’s TV advertising slots will continue to be marketed by its ad sales subsidiary El Cartel Media and not move to Ad Alliance.
The ruling aligns with a similar decision earlier this year. In a separate case, the Cartel Office blocked RTL’s planned acquisition of Nickelodeon’s German operations from Paramount. That deal, too, was deemed likely to harm competition in the children’s television market.
