The Competition Authority has published a decision No. 13/2014, Capacent ehf. electronic measurement of radio media usage. The decision concerns the electronic measurement of radio and television listening and viewing by Capacent ehf. The Competition Authority was of the opinion that Capacent's conduct in carrying out the measurement could be likely to restrict competition, particularly in the market for advertising in audiovisual media. Capacent has entered into a settlement with the Competition Authority regarding the matter.
The decision sets out detailed conditions for the implementation of the measurement, which are intended to facilitate the participation of new and smaller broadcasters and publishers in the measurement. The conditions also seek to ensure that the presentation of data from the measurement does not distort the competitive position of broadcasters, and that confidential information is not passed between competitors as a result of its implementation.
Among the main conditions are a specific provision on pricing for new and smaller broadcasters, and a provision on the publication of information from the measurement. The cost of participating in the measurement, as it has been to date, has been a significant barrier to entry for new and smaller media outlets, which have had to pay a considerably larger proportion of their revenue for participation than the large media companies.
The electronic measurement is carried out using so-called ppm meters. as individuals in the sample The measurements are carried by the participating broadcasters. The meter is a small electronic device that detects a hidden audio signal embedded in the broadcasts of the television and radio stations taking part in the measurement.
By decision of the Competition Authority No. 61/2008, Request for an exemption from the provision of the Competition Act prohibiting cooperation between competitors, concerning the agreement between Capacent ehf. and Ríkisútvarpið ohf., an exemption was granted on the basis of Article 15 of the Competition Act No. 44/2005 for the collaboration between Capacent, Ríkisútvarpið ohf., 365 miðlar ehf. and Skjárinn miðlar ehf. on the electronic measurement of the use of broadcast media in Iceland. The exemption was granted subject to specific conditions, which included, amongst other things, equal access for other broadcasters to the measurement. Following changes in the ownership of Capacent and the equipment used for the measurement, the agreement that had been the basis for the collaboration and the exemption lapsed. The new Capacent entered into bilateral agreements with the media outlets that were participants in the measurement, and therefore it was no longer a formal collaboration between competitors.
The Competition Authority's review of the survey initially consisted of following up on complaints about Capacent's possible breach of the conditions of the decision. No. 61/2008.
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