ACM: further investigation needed into acquisition of media company RTL by rival DPG
The Netherlands Authority for Consumers and Markets (ACM) has decided that further investigation is needed into the consequences of the planned acquisition of media company RTL Nederland (RTL) by rival media company DPG Media (DPG). The acquisition would result in a media company with an extensive portfolio of television channels, video streaming services, radio stations, newspapers, and online news. Based on its investigation, ACM foresees possible adverse effects of the acquisition on the quantity, quality, and pluralism of the general-news landscape for consumers. Therefore, ACM decided that further investigation is required.
DPG publishes various newspapers, such as AD, de Volkskrant, Trouw, and Het Parool. In addition, DPG publishes magazines, and also owns general-news websites, including NU.nl. DPG is also active on the Dutch radio market with national radio stations Qmusic and JOE. RTL has several commercial television channels. In addition, RTL offers streaming services, of which Videoland is the most important one. RTL also offers general news online through its website rtl.nl and in its app.
News landscape
DPG would gain an even stronger position as provider of general news (free and paid), both online and offline, as a result of the acquisition of RTL. The acquisition could thus possibly enable DPG to reduce the quality and accessibility of general-news services, for example, by distributing news articles across multiple channels instead of creating separate ones, or by reducing freely available news. If that is the case, it may result in a reduction of the quantity, quality, and pluralism of the general-news landscape for consumers.
Furthermore, thanks to its stronger position, DPG could possibly be able to offer advertisers a broader advertisement package on favorable terms, in part because of the substantial amount of data that it has about its users. The question is whether other media companies will still be sufficiently able to compete for these advertising revenues after the acquisition. If this is not the case, it may have adverse effects on competitors, advertisers, and, ultimately, consumers.
In addition, the acquisition of RTL can further strengthen DPG’s bargaining position vis-à-vis news agency ANP. As a result thereof, DPG might be able to negotiate lower ANP rates, exert influence over ANP’s news choices, or stop using ANP’s services. In which case, the acquisition may have adverse effects on other media companies that use ANP’s services, and, ultimately, on the general-news landscape for consumers.
Finally, the acquisition may have adverse effects on journalists’ employment terms, because DPG might gain or strengthen its buyer power following its acquisition of RTL. ACM wishes to further investigate the consequences of the acquisition on the position of both employed and freelance journalists.
Next steps
DPG and RTL will now have to decide whether or not they wish to go through with the acquisition. If they do, they will have to apply for a license for the acquisition. ACM will then carry out an in-depth investigation into the consequences of the acquisition. The Dutch Media Authority (CvdM) will also play a role in this investigation. If DPG and RTL file a license application, ACM will take a decision within 13 weeks about whether or not the acquisition will be cleared. Sometimes, ACM needs more information. ACM will then request that information from the companies that notified the proposed acquisition. In that situation, the license application process is suspended until we have received that information.
Why does ACM assess acquisitions?
With every acquisition, there is the question of whether sufficient competition remains, directly after the transaction as well as in the future. Competition ensures that products or services are of high quality, and that they are offered on the market at competitive prices. Competition also promotes innovation. That is why ACM decides in advance whether or not businesses are allowed to join forces. ACM assesses whether markets will continue to work well for people and businesses, now and in the future.