The Competition Authority approves the merger of 365 miðla ehf. and IP-fjarskipta hf. with conditions

The Competition Authority has been investigating the merger of 365 miðlar ehf. and IP-fjarskipta ehf., on the basis of a merger notification received by the authority earlier this autumn. Following discussions with the merging parties, 365 midlar ehf. has agreed to comply with certain binding conditions in its operations in order to mitigate the risk of potential anti-competitive effects of the merger.

On that basis, the Competition Authority has authorised the merger. In accordance with the above, 365 has agreed to be subject to the following conditions in its operations:

• It is prohibited to make the purchase of telecommunications services from the company conditional on the purchase of media services.

• It is prohibited to bundle the sale of the company's media services and its telecommunications services in return for a price or commercial terms that can be equated to such a condition. It is prohibited to offer individual services in their entirety.

• It is specified that the implementation and development of services in the mobile and television broadcasting market shall be completed no later than 1 April 2016, at which point the conditions shall take full effect in respect of those services. Otherwise, the conditions take effect immediately.

• Transparency shall be maintained in the pricing of the company's various services.

The above conditions are based on an assessment of the competitive conditions in the relevant markets. This assessment is based on data and views from companies and governments in the media and telecommunications markets. Furthermore, an assessment was made of international developments in the media market, particularly potential changes in the pay-TV market.

The Competition Authority will shortly publish a decision on the merger on its website, in which the conditions for it will be explained in more detail.