EU extends probe into News's Premiere entry

[SAT-WORLD]

The EU Commission wants to look more closely into News Corp’s entry into German pay-TV operator Premiere. The examination period has been extended by 10 working days, the Commission announced in Brussels.

The decision as to whether the engagement by Rupert Murdoch’s international media company will be approved, possibly under certain conditions, or a more in-depth investigation is called for has therefore been postponed until June 25. According to the Commission, the reason for the delay is “first phase commitments” offered to alleviate competition concerns. According to a Dow Jones report, a possible reason for this is Premiere’s recent decision to introduce the encryption technology VideoGuard after the broadcaster experienced continuing piracy problems with its currently utilised system Nagravision. News Corp is a major shareholder in NDS. The same report cited Premiere CEO Michael Börnicke as having said that he expects “no difficulties with regard to the European Union probe”.

News Corp became Premiere’s largest single shareholder at the beginning of January when the company acquired the 14.58% share package held by German cable operator Unitymedia. Since then News Corp has gradually expanded its stake through the acquisition of more shares. The company’s holding currently stands at 25.01%, giving it a blocking minority. Murdoch wants to further increase his influence at Premiere by having two representatives appointed to the supervisory board at the next annual general meeting on June 12.

Source:Rapid Tv News