According to the Bundeskartellamt’s current evaluation the merger of Axel Springer AG (Springer) and ProSiebenSat.1 Media AG (ProSiebenSat.1) could not be cleared under competition law. The merger would affect the TV advertising market, the reader market for over-the-counter newspapers and the national advertising market for newspapers.

The President of the Bundeskartellamt, Ulf Böge, stated: “According to our current estimation, the merger of Germany’s largest newspaper publisher, which, in its own perception, is also internationally one of the leading media companies, and the TV company ProSiebenSat.1 would lead to an inadmissible degree of market power in the three affected markets.”

According to the Bundeskartellamt’s findings ProSiebenSat.1 and the RTL group, which belongs to the Bertelsmann group, together hold a dominant position in the TV advertising market with a constant market share of approx. 80 % over the last years (a so-called “uncompetitive duopoly” without any substantial competition from third parties). The merger would lead to a further assimilation of the corporate structures of the two conglomerates in the neighbouring markets for newspapers and magazines and would result in a number of interlocks between Springer/ProSiebenSat.1 and Bertelsmann. This would further secure and strengthen the duopoly described above. The interlocks would result from mutual minority shareholdings of Springer and Bertelsmann in several private radio stations such as Radio Hamburg and Antenne Bayern, as well as in press distribution companies e.g. in Leipzig, Dresden, the Palatinate and Berlin; in addition Springer and Bertelsmann mutually control the rotogravure company Prinovis.

The merger would also lead to a strengthening of Springer’s dominant position in the national reader market for over-the-counter newspapers. With its newspaper BILD Springer holds a market share of approx. 80 % in this market. The merger would enable Springer to further secure and strengthen the position of BILD through cross-media promotional and editorial measures (cross-media promotion).

Finally, according to the Bundeskartellamt’s current findings the merger would also lead to a strengthening of Springer’s market position in the national advertising market for newspapers. With its newspapers BILD and Welt the Springer publishing house already holds a pre-eminent market position with a market share of approx. 40 % in this market. The merger would enable Springer to offer coordinated product advertising campaigns in several media and to launch cross-media advertising campaigns for third parties. Thus Springer’s market dominance in the advertising market for newspapers would be further secured.

The parties to the merger and the parties summoned to the proceedings have three weeks to comment on the Bundeskartellamt’s findings. The Bundeskartellamt will consider these comments and reach a decision within the given time limit before the end of the year.