TF1 and M6 propose to keep the television advertising agencies separate for 3 years after their merger, according to information from the Figaro Friday. According to the newspaper, this separate management proposal is part of the remedies proposed by the parent companies of the two groups, Bouygues and RTL Group, to respond to the competition problems posed by the merger of the two television networks.
The remedies proposed to the Competition Authority are being consulted with the competitors of TF1 and M6, who have until August 25 to submit their comments. Neither the Competition Authority, TF1 or Bouygues would comment on the Le Figaro report, and no M6 official could be reached on Friday.
75% of TV advertising market revenue
The Competition Authority is organizing hearings on the proposed merger on September 5 and 6, with a final decision expected in October. Its investigation services issued an unfavorable opinion, which the Authority’s college is not obliged to follow. The combination of TF1 and M6 would create a French giant in the market for audiovisual rights, channel distribution and television advertising, with approximately 75% of French turnover in the latter sector.
In accordance with the commitments informed by the Figaro, the strict separation of the two agencies (self-government, prohibition of speaking to each other, etc.) could be extended for 3 years if the Authority so requests. The advertising channels in the radio medium would also remain separate.
As for audiovisual production, the two channels promise to “limit the circulation of French films on the antennas of the potential group.” In addition, Bouygues and RTL Group would agree to extend by one year the expiration dates of the distribution contracts of the TF1 and M6 group channels, in particular Canal+ and the telecommunications operators -Orange, Free, SFR-.
Source: BFM TV
