WRITTEN QUESTION P-0413/99

by Ernesto Caccavale (UPE) to the Commission

(19 February 1999)

Subject: Illegal restrictions on free competition in the pay-TV sector in Italy

Subsequent to my Written Question E-3876/98(1), the Italian Government recently adopted a law decree preventing any undertaking which holds authorisation or a concession for radio and television broadcasts from acquiring more than 60 % of the exclusive rights to broadcast the series A football championships in coded form.

This rule constitutes a ban only in appearance since it allows the holders of authorisations who are already in possession of at least 60 % of such rights to retain their advantage and, therefore, to consolidate their dominant position. Furthermore, the rule enables the 60 % limit to be exceeded if the conditions prevailing in the relevant markets dictate that there should be only one purchaser - although in such a case the duration of the contracts for the purchase of exclusive rights may not exceed three years.

In the Italian pay-TV sector there are two players: Telepiù and Stream. The first occupies a dominant position as regards football rights, having concluded contracts for the exclusive broadcast of the matches involving the most important teams in series A and series B.

Can the Commission answer the following:

1. Does it not consider the law decree in question to be contrary to the most elementary European rules on competition and the free market (Articles 85 and 86 of the EEC Treaty), which outlaw concerted practices and the abuse of dominant positions, since the law decree benefits companies such as Telepiù which are already present on the market, have links with the state television company and are clearly in a monopoly position?

2. Does it not consider that the Italian Government, by introducing this decree into a still-developing market and by imposing rigid limits such as the 60 % ceiling, may drive away new investors and hinder the development of the pay-TV market in Italy?

3. Would it say what action it intends to take in order to ensure that normal market and competition conditions are restored, so as to protect the consumer's right to choose freely, particularly in view of the reply to Question E-3876/98 in which the Commission stated that it was closely following the development of the digital television market in Italy and that it would make sure that the relevant Community rules were being correctly applied?

Answer given by Mr Van Miert on behalf of the Commission

(9 April 1999)

The Commission would point out first of all that the Italian Government's Decree-Law No 15 of 30 January 1999 (prohibiting the acquisition of more than 60 % of the exclusive rights to broadcast the Italian Series A football championships in coded form) has not yet completed the legislative process and that the text which is finally adopted may differ substantially from the present text. This appears to be a real possibility in the light of the amendments already made, which include recognising that each club owns the encrypted broadcasting rights relating to its matches and giving the Italian antitrust authority the power to allow exemptions to the 60 % ceiling. The Commission will, if appropriate, be sure to assess the final text in the light of the rules governing the internal market and the free movement of services.

1. However, after a preliminary analysis, the Commission cannot agree that the Decree-Law is in breach of Community competition rules, in so far as it aims to provide opportunities for access by third parties by ensuring that rights are not concentrated exclusively in the hands of a single operator. If one operator were to acquire all the rights, contracts could not extend beyond a limited period.

2. At first sight, the Commission considers that the sharing of sporting rights among several operators, as should result from the Italian Decree-Law, should contribute to the balanced development of the Italian pay-TV market.

3. The Commission will monitor the developments on the market closely in order to ensure that the sharing of sporting rights, as provided for in the Decree-Law, does not have the effect of driving away investors and thereby hindering the development of the pay-TV market in Italy, as the Honourable Member fears.

(1) OJ C 320, 6.11.1999, p. 84.