The European Commission has announced that it has begun a detailed investigation into the acquisition of Italian pay-TV company Telepiù by News Corporation.
Two months ago and following protracted negotiations, Rupert Murdoch’s organisation agreed a deal to buy Telepiù from the French media giant Vivendi for E920 million (see
News Corp Completes Telepiu Transaction).
News Corp already has a 50% share in Telepiù’s competitor, Stream, and planned to merge the two operators to form a new venture, Sky Italia. However, there is concern that this would constitute a monopoly as there are no other pay-TV providers in Italy. The united broadcaster would also have exclusive rights to premium content such as Serie A football and blockbuster movies.
News Corp argues that a dominant position will not be created as pay-TV only commands a tiny share of the Italian market (9%) and there are no less than eight free-to-air channels.
The initial review will take one month but the commission is subsequently entitled to launch a more thorough four-month investigation if complications arise.
