ACM will conduct ‘in-depth investigation’ into the merger between RTL and Talpa – IT Pro – News

The Netherlands Authority for Consumers and Markets (ACM) will continue to conduct ‘in-depth investigations’ into the requested merger between RTL and Talpa. Due to the size of the two companies, the merger could have ‘negative consequences for price, quality and innovation’.

The follow-up study should show whether the RTL/Talpa combination would be able to ‘increase television advertisements as a result of the strong position they will gain’ after a merger. According to the ACM an in-depth data analysis is needed to find out what effects the merger would have on the advertising market.

In addition to the consequences for advertisers, the market watchdog is also concerned about the consequences for distributors of television channels, for production companies and for the ultimate consumer. ACM will investigate whether the as yet hypothetical company could increase the price for distributors such as Ziggo and KPN. The consumer may also pay more as a result. The market watchdog also warns of a ‘depletion of supply’ because third-party productions would have even less chance of being made as a result of a merger.

RTL and Talpa currently own a large part of the commercial television channels. The two companies jointly manage all RTL channels and SBS6, Net5, Veronica, and SBS9 respectively. The possible merger was announced summer 2021 and had to strengthen Videoland’s position. If the proposal is approved, RTL director Sven Sauvé will be in charge of business. Talpa owner John de Mol will remain a shareholder and will focus on devising and producing new formats.

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