Thursday, June 9, 2016

Three questions on the agreement between Canal + and Bein Sports, refused by the Competition Authority – francetv info

This is a stinging setback for Vincent Bolloré. The Competition Authority opposes, Thursday, June 9, in the exclusive distribution agreement between a subsidiary of Vivendi and Canal + Bein Sports, signed in February. Francetv info helps you understand the issues of this case.

What was the issue of this agreement?

The project agreement provided for the exclusive broadcast channels Bein Sports in Canal + group offers for a period of five years, for a total amount of between 1.5 billion and 1.7 billion euros. This draft agreement would have to Canal + to enhance its sports offer, balding since the launch of the Qatari channel in 2012, while reducing the influence of a formidable competitor. For Canal + lost 550,000 subscribers in five years and its accounts have plunged into the red.

However, the project was a major fear of many industry players, telecom operators in mind on the ground that might restrict access to the most popular sporting events. Canal + had therefore made a series of concessions to address the concerns of the Competition Authority. He specifically guaranteed that sports fans could always subscribe to the offer of Bein only at the price of 14 euros, without being forced to subscribe to Canal +.

Why this refusal?

These concessions have clearly not enough to reassure the Authority, who chose to veto. “this draft Okay, we did not know any, involved a risk of collusion in sports rights, as both players would have held 80% of sports rights, and the football league was concerned “, said its president, Bruno Lasserre, at a press conference.

the regulator believes that Canal + did not demonstrate a substantial change in the competitive landscape, explained Bruno Lasserre. So there is no reason to allow the group to distribute a chain exclusivity, which it is forbidden since 2012, when it acquired its rival TPS and 2017.

clearly, Canal + has tried to prove that its agreement with Bein was not a barrier to competition, but the Authority has not left fooled. “The Competition Authority has not so appreciated lobbying finesse of Vincent Bolloré” analysis The Days (item fee). Just as the High Council for Broadcasting (CSA) elsewhere: in the last few days he had felt that this agreement was problematic for the sector. But the CSA has a consultative role in this case.

This decision threatens Does Canal +?

To hear Vincent Bolloré, this agreement was the solution to save Canal + and its teams. For the Chairman of Vivendi’s Supervisory Board did not hesitate to speak bankruptcy risk of the Canal + group on April 21 to the shareholders in general meeting in Olympia. Thursday on Twitter, the group reacted soberly to the decision of the Competition Authority.

The Authority, she does not take too concern for Canal +. Bruno Lasserre recalled Thursday that the group “largely profitable” , despite the drop in subscribers in France and the rise of sports rights. A small challenge that has not escaped a reporter from Libération on site.

For Bruno Lasserre, Canal +, which continues to propose an offer “overpriced” to “Customer” “ages and erodes” should question it. He promises that the Authority will help. “We’ll put everything flat and defining a clear and predictable framework” for Canal + in 2017, a he said Thursday.

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