The Portuguese Competition Authority (AdC) has decided to proceed to an in-depth investigation into the proposed acquisition by Altice of commercial broadcaster Media Capital. The merger involves the vertical integration between one of the leading providers of telecommunications, pay-TV and multi-play services, and the leading provider of audiovisual content and pay-TV channels in Portugal.
Based on the evidence gathered so far, according to the AdC, there are strong indications that the acquisition of Media Capital by Altice may give rise to significant impediments to effective competition in several markets, in terms of both audiovisual content production and competition between TV channels and advertising markets, and in the telecommunications and pay-TV services markets. The merger is also likely to have a significantly negative impact in the development of new TV content and business models regarding online broadcast and access to audiovisual contents.
This echoes similar concerns already voiced by the communications regulator Anacom and media regulator ERC. The competition regulator has the final say on the deal, which was first announced last July.
