The media merger of MFE MEDIAFOREUROPE N.V.; ProSiebenSat.1 Media SE was notified on 21 November 2023. MFE MEDIAFOREUROPE N.V plans to raise its current stake in ProSiebenSat.1 Media SE (P7S1) by P7S1’s next ordinary annual general meeting, thereby gaining de facto sole control over P7S1.
The merger had been notified once before, at the end of 2022. The applicant withdrew that notification following the request made by the Austrian Federal Competition Authority (AFCA) for an examination, resulting in the launch of an in-depth review by the Cartel Court (see press release of 11 January 2023). The Federal Cartel Prosecutor also filed a request for examination at that time.
AFCA examines effects on media plurality
The planned merger falls under the notification obligation according to the European Merger Regulation. It will therefore be examined by the European Commission in relation to its impact on competition. The Commission did not raise any objections, with the issue of media plurality not being part of the examination. The AFCA will therefore only be examining the effects of the planned merger on media plurality in the pending proceedings. As an official party, the Authority is entitled to examine mergers of media companies or media support companies and request an in-depth review by the Cartel Court if a media merger is expected to affect media plurality. The Federal Cartel Act (KartG) protects media plurality to ensure that media coverage takes account of a variety of opinions.
P7S1 is the sole shareholder of ProSiebenSat.1Puls4 GmbH (P7S1-AT), which combines all Austrian media activities of the P7S1 Group. Specifically, the planned merger affects the Austrian channels PULS 4, PULS 24, ATV and ATV 2, as well as the Austrian programme and advertising blocks on ProSieben, kabel eins, SAT 1, Sixx, ProSieben MAXX, Sat.1 Gold and kabel Eins Doku.
AFCA files request for examination with Cartel Court
P7S1 is one of the few providers of commercial TV channels that produce a broad range of content (news, entertainment, infotainment, films and series) particularly for an Austrian audience. As a market participant, P7S1 is therefore a significant factor in media plurality in Austria.
In relation to the question of the planned merger’s impact, AFCA found in its examination that, based on currently available information, negative effects on the current status of P7S1’s media activities in Austria cannot be ruled out, particularly with regard to the extent of Austria-specific programming content.
The Austrian Communications Authority (KommAustria) has submitted a statement in which it essentially confirms its concerns in relation to media plurality in Austria, which it voiced in the previous proceedings at the beginning of January 2023.
Based on the available information, an in-depth review of the planned merger is deemed necessary. The AFCA therefore requested an examination on 19 December 2023. The Federal Cartel Prosecutor (Federal Ministry of Justice) will also file a request for examination.