Bundeskartellamt ends proceedings against Deutsche Funkturm after pricing structure amendments

21.12.2016

The Bundeskartellamt has terminated the administrative proceedings which it initiated against Deutsche Funkturm GmbH, Münster in January 2015. In the proceedings the authority investigated suspected abusive practices by Deutsche Funkturm in the lease of high altitude mounting surfaces for the installation of FM antennas on antenna masts and towers.

Andreas Mundt, President of the Bundeskartellamt: "According to our preliminary assessment, Deutsche Funkturm holds a dominant position on the relevant market. Its planned pricing structure for the lease of surface area for FM antennas could have discriminated against smaller broadcasting network operators, in particular. As Deutsche Funkturm adjusted its price structure in reaction to our findings, we were able to terminate the proceedings."

In the transmission of FM radio the network operators are generally entrusted by radio stations with the broadcast of their radio programmes. In order to perform this task the network operators rent space on antenna masts to install FM radio antennas. Alternatively, they procure the input services of other network operators. The limited number of broadcasting sites above 100m can be an important factor affecting the range of a broadcasting station.

Since the beginning of this year the amendment to the Telecommunications Act (TKG) and market regulation measures undertaken by the Federal Network Agency have opened up opportunities for competition between network operators. The upstream market for the lease of space for FM antennas is not subject to regulation under the TKG. The Bundeskartellamt's proceeding was initiated to protect emerging competition on this new market.

Further information on the case can be found in a case summary dated 21 December 2016, which is available (in German only) on the Bundeskartellamt's website.

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