RTL-ProSieben Online TV Plan Blocked by German Cartel Office

BERLIN: Germany’s antitrust regulator has officially blocked plans by RTL and ProSiebenSat.1 to set up a joint online video platform, citing that the service may be "harmful to competition."

Andreas Mundt, the president of the Federal Cartel Office, said in a statement that the potential benefits of the proposed VOD service don’t outweigh the risks the JV could pose to competition in the country. “The establishment of a common platform would strengthen the dominant duopoly of the two broadcasting groups in the television advertising market,” Mundt said.

RTL and ProSiebenSat.1 did say the platform would be open for public and private channels in Germany and Austria to put their content online. “The cartel office fails to recognize that the proposed joint venture would be a purely technical service provider, as opposed to the U.S. platform Hulu,” and wouldn’t include marketing activities, RTL Deutschland said in a statement. “Any marketing would be done separately by each of the participating broadcasters.”

The companies have a month to appeal the antitrust office’s decision; both have said they’re considering doing so.