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EC approves Ziggo acquisition by Liberty Global

2014-10-10 12:08:00| Telecompaper Headlines

(Telecompaper) The European Commission has approved the proposed acquisition of Ziggo by Liberty Global, pending a few conditions. To address these conditions, Liberty Global offered to sell Film1, its premium Pay TV film channel. Liberty Global also committed to terminate clauses in channel carriage agreements that limit broadcasters' ability to offer their channels and content over the internet, and not to include such clauses in future channel carriage agreements for eight years. These commitments remove the Commission's concerns. The Commission said it was concerned that the original plans for the merger would have hindered competition by removing two close competitors and important competitive forces in the Dutch market for the wholesale of premium Pay TV film channels, and by increasing Liberty Global's buyer power vis-a-vis TV channel broadcasters. This would have allowed Liberty Global to hinder innovation in the delivery of OTT services. The merger brings together the first and the second largest cable TV networks in The Netherlands. Both companies operate in different geographic areas within the country and as such, do not compete for the same customers. The merger will not change this.

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