French Competition Authority won’t split Canalsat from Canal+

Pascale Paoli-Lebailly | 11-07-2012

The French Competition Authority, which is currently studying the Canalsat/TPS merger, back from 2007 but which has been invalidated, will not ask Canal+ group to sell satellite platform Canalsat.

The Authority will also allow Canal+ to keep distributing its own group channels.

To Canal+ President Bruno Lasserre, such a decision would break its vertical integration, which indeed may have uncompetitive effects, but that is profitable and compatible with the industrial strategy of a pay-TV group. About the channels’ distribution, he estimates a total ban would affect the way French film industry is financed, as Canal+’s contribution to cinema is based on its annual revenues.

Bruno Lasserre also tried to play down fearsabout the potential new competition coming from web giants Netflix, Google and Apple if restricted in action.

The Authority’s final decision about the TPS/Canalsat merger will take place around 24 July.