Constitutional council rejects Canal+ request about merger

Pascale Paoli-Lebailly | 14-10-2012

The French Constitutional Council has rejected pay-TV giant Canal+'s effort to overturn sanctions France's competition authority placed on it as part as the Canalsat-TPS merger.

Vivendi and its subsidiary Canal+ said the competition authority had not taken an impartial decision and that its withdrawal of the merger authorisation was an excessive blow to entrepreneurial freedom.

In July 2012, the authority imposed new restrictive injunctions over Canal+'s control on the pay-TV market. In both cases, the Constitutional Council has considered those powers respect principles of independence and impartiality, "do not constitute a disproportionate restraint on the freedom to do business," and that they are constitutional.

Group Canal+ has acknowledged the decision but adds it doesn't question the two other appeals still pending in a different court. The French State Council will reveal before 23 October whether it rejects Canal+ís requests to have the authority's decision cancelled or whether to suspend those sanctions.