Cabinet favors joint media ventures

Germany's state minister for media, Monika Grütters, said Wednesday the drafted law changes would give German media outlets - including broadcasters - more "room to maneuver" in an increasingly competitive digital environment.

Her remark followed criticism last week from Germany's anti-monopolies commission that it was not convinced that claimed synergy effects would justify what might turn out to be unfair mergers.

Media cooperation was already possible under existing judicial frameworks, the Bonn-based commission said.

The commission also warned against easing monetary thresholds for firms to enter into mergers, saying innovative firms must be allowed to compete fairly without being endangered by powerful monopolies.

The changes adopted by cabinet to Germany's Act against Restrictive Practices would allow media outlets to jointly acquire advertising, raising the question of whether they can remain editorially diverse.

This safeguarding of "media pluralism," to ensure a variety of content and opinion for readers, viewers and listeners, is another guiding principle of the EU's media freedoms and digitalization agenda.

Recourse for consumers under EU law

The adoption of the EU's pro-competition directive (2104/104/EU) into German law is supposed to make it easier for companies and individual consumers to go to court and seek damages from a firm exercising a monopoly.

Under EU rules, businesses are not allowed to fix prices or carve up markets among themselves, abuse dominant positions or enter into mergers that enable them to control the market.

In recent months, EU anti-monopolies authorities have challenged the US tech giant Google over market dominance and even the International Skating Union over its objections to athletes racing outside its official calendar.  

Cross-border digitalization has already prompted the European Commission to seek a copyright reform that would make it easier for broadcasters to distribute content online throughout the 28-nation bloc, despite objections by media concerns over losses of market segments.

ipj/kms (Reuter, dpa, epd)