Merger of 365 miðla ehf. and IP-fjarskipta ehf. (Tal)

The Competition Authority has been investigating the merger of 365 miðlar ehf. and IP-fjarskipta ehf., based on 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 on its operations in order to mitigate the risk of potential anti-competitive effects from the merger. On that basis, the Competition Authority has cleared the merger.

Accordingly, 365 have agreed to abide by the following conditions in their operations: 

1. It is not permitted to make the purchase of telecommunications services from the company conditional on the purchase of media advertising services.

2. 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 outsource individual services in their entirety.

3. 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.

4. 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 the international developments in the media market, particularly potential changes in the pay-TV market.