Joaquín ALMUNIA
Vice President of the European Commission responsible for Competition Policy
Statement on opening of investigation into Pay TV services
Statement, press room
Brussels, 13 January 2014
I would like to announce today that the
Commission has opened an antitrust investigation concerning the
cross-border provision of pay TV services.
More precisely, we want to take a closer look
at the provisions in the licensing agreements between a number of US
audiovisual studios and EU pay TV broadcasters.
As far as broadcasters are concerned, the
proceedings involve the largest pay-TV operators active in countries
which represent the most important European pay-TV markets: BSkyB in the
UK, Sky Italia in Italy, Canal+ in France, Sky Deutschland in Germany
and DTS (operating under the Canal Plus brand) in Spain.
The film studios involved are the so-called
"major" US studios: Twentieth Century Fox, Warner Bros., Sony,
NBCUniversal and Paramount.
More and more EU citizens, who watch films,
use pay TV services broadcast by satellite and, increasingly, available
through online streaming.
Popular films and other audio-visual content
are licensed by US film studios to broadcasters in the EU. Such
licensing occurs on a territorial basis. Typically, a license is granted
for a film to a single broadcaster in each Member State.
The investigation will allow us to look at the
restrictions in agreements between film studios and pay-TV broadcasters
that grant "absolute territorial exclusivity" to these broadcasters.
Such provisions ensure that the films licensed by the US studios are
shown exclusively in the Member State where each broadcaster operates
via satellite and the internet. They prevent access by subscribers who
are located outside the licensed territory.
I want to be clear on one point: we are not
calling into question the possibility to grant licenses on a territorial
basis, or trying to oblige studios to sell rights on a pan-European
basis.
Rather, our investigation will focus on
restrictions that prevent the selling of the content in response to
unsolicited requests from viewers located in other Member States - the
so-called "passive sales" - or to existing subscribers who move or
travel abroad.
To illustrate: if you subscribe to a Pay TV
service in Germany and you go to Italy for holidays, you may not be able
to view the films offered by that service from your laptop during your
holidays. Similarly, if I live in Belgium and want to subscribe to a
Spanish Pay TV service, I may not be able to subscribe at all if there
is absolute territorial exclusivity.
Such provisions might constitute an
infringement of EU antitrust rules, which prohibit anticompetitive
agreements. Indeed, the Court of Justice, in a judgment concerning the
satellite broadcasting of football matches, has ruled that absolute
territorial exclusivity given to a broadcaster may be anticompetitive if
it eliminates all competition between broadcasters and leads to a
partitioning of the Single Market along national borders.
So in the context of the investigation we are
launching today, we will carefully examine if the principles set out by
the Court of Justice should also be applied to other types of
audiovisual content such as the popular films licensed by the US
studios. Of course, the opening of the investigation does not prejudge
its outcome.
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