French media group Vivendi has secured European Union antitrust approval for its plan to gain control of Telecom Italia after the European Commission said it has agreed to sell the Italian telecommunications company’s majority stake in broadcasting services group Persidera.
Vivendi became the main shareholder in Telecom Italia in June 2015 and strengthened its hold earlier this month by appointing two thirds of its board. The EC said in a statement: “In order to address the competition concerns identified by the Commission, Vivendi committed to divest Telecom Italia's stake in Persidera.”
The statement added: “The Commission found that, post-transaction, Vivendi would have had an incentive to raise prices charged to TV channels in the market for wholesale access to digital terrestrial television networks, where Persidera and Mediaset each hold a significant share.
“The benefits of such a strategy would be obtained either directly through Persidera or indirectly via the minority shareholding in Mediaset, since other players active in the market do not represent a viable alternative for TV channels. As a result, TV channels would have found it more expensive to reach their audiences in Italy.”
Telecom Italia currently owns 70 per cent of Persidera, while Vivendi is also engaged in a battle with Italian regulators over its intentions in the market. Vivendi last month said it was considering legal action after Italian communications authority AGCOM ordered it to cut its stake in either Italian broadcaster Mediaset or Telecom Italia within a year.
Vivendi is the single biggest shareholder in Italy’s main telco, with 24 per cent, and has recently built up a 28.8-per-cent interest in Mediaset. Vivendi and Mediaset are currently engaged in a bitter dispute. Mediaset, one of the leading sports broadcasters in Italy, is seeking damages from Vivendi after it stepped away from an April 2016 agreement to take full control of pay-television broadcaster Mediaset Premium.
Telecom Italia has a presence in the Italian sports media market including mobile/internet rights to Serie A, the top division of domestic football, and digital clips rights to the Coppa Italia. On Friday, Lega Serie A, the governing body of the top division, issued a domestic rights tender for the three seasons from 2018-19 to 2020-21.
A deadline of June 10 has been set for bids, with Lega Serie A targeting a minimum of €1bn ($1.1bn) per season for its domestic rights.