The Competition Authority has taken a decision on the cooperation agreement between Capacent and the broadcasters regarding electronic audience and listening measurement.

The Competition Authority received a submission from Capacent ehf., which described the cooperation between Capacent ehf., Ríkisútvarpsins ohf., 365 miðlar ehf. and Skjásins miðlar ehf. regarding electronic measurements of listening and viewing of the parties' radio and television channels using so-called 'farma' meters. The letter stated that a waiver was requested under Article 15 of the Competition Act, on the basis that the Competition Authority considered the collaboration would be likely to distort competition.

In its decision, the Competition Authority considers that the collaboration could distort competition in a manner that contravenes Article 10 of the Competition Act, particularly in the market for media measurement. In this regard, it is noted that together the companies involved are a powerful buyer in the media measurement market. The equipment used for the measurements and the processing of the resulting data is expensive. It must be considered unlikely that the broadcasters would enter into a collaboration with another party for such measurements during the term of the agreement, as it is hard to see what purpose this would serve them. Furthermore, it should be borne in mind that the competitive position of those competitors not involved in the collaboration would be impaired. Such a move would affect their position both in relation to viewers/listeners, advertisers and agencies in all marketing. However, the Competition Authority has decided to grant the collaboration a temporary exemption, but is making the granting of this exemption conditional.

With reference to these conditions, the Competition Authority considers that all the conditions of Article 15, which must be met to grant an exemption for an undertaking's cooperation from the prohibition in Article 10 of the Competition Act, are fulfilled. The conditions are intended to eliminate the difficulties that the collaboration might entail, for example by ensuring that new broadcasters can enter the market on terms comparable to those enjoyed by the original parties to the collaboration. Furthermore, to prevent the collaboration from hindering competition between the broadcasters involved by imposing a condition that restricts the information exchange that may take place between the parties to the agreement in connection with the collaboration.

Decision No. 61/2008.