EU approves News Corp/Premiere

[SAT-WORLD]

The EU Commission has approved News Corp’s acquisition of a controlling interest in German pay-TV operator Premiere.

There is, however, one condition: News Corp subsidiary NDS, whose encryption system VideoGuard Premiere is currently implementing for its satellite households, must through a sublicensing contract with Premiere’s technical service provider continue to enable competing pay-TV operators to offer their services to Premiere’s subscribers on their existing set-top-boxes.

That would create an open platform, much as is the case with BSkyB in the UK.

According to the Brussels-based competition authority, the condition was imposed to ensure that Premiere’s satellite platform remains open to other broadcasters while preventing the Munich-based company from further increasing its dominant position in the German pay-TV market. Non-compliance will be subject to fines.

The Commission feared that through the introduction of VideoGuard, Premiere could lock out rival operators from its satellite platform. By placing the condition, the watchdogs believe that News Corp’s involvement in the broadcaster will not lead to any significant impediment for competitors.

Rupert Murdoch’s international media company became Premiere’s largest single shareholder at the beginning of January when it acquired a 14.58% stake. Since then, News Corp has gradually increased its engagement to 25.01%, giving the company a blocking minority. Two News Corp representatives were elected to Premiere’s supervisory board at the company’s annual general meeting on June 12.

Source:Rapid Tv News

[kerrywez]

And pigs will fly.

Very best regards Wez

[betas]

wont stop B£B shares falling big drop on Friday.