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Notification of agreement between Radio Denmark, TV 2 and a number of other radio- and television stations

15. december 2004

3/1120-0301-0323/SEK/MM The Council meeting 15 December 2004

The case concerns a notification of a cooperation agreement between Danmarks Radio, TV 2 and a number of other radio and television stations. The agreement implies that the radio- and television stations will negotiate jointly with the collecting society organisations KODA and Gramex con-cerning one of the existing principles that regulate what amount the radio- and television stations must pay for the right to play protected music in television and radio.

The parties to the agreement applied for a statement issued in accordance with section 9(1) of the Danish Competition Act – stating, that the agreement would have no appreciable effect on competition and therefore fell outside the scope of the prohibition in section 6(1). In the alternative the parties applied for an individual exemption according to section 8 (1).

The Danish Competition Council firstly assessed whether the agreement had an appreciable effect on competition on the vertical plan between the radio- and television stations and respectively KODA and Gramex. Further it was assessed whether the competition on the horizontal plan between the radio- and television stations was limited.

Regarding the competition between the radio and the television stations re-spectively KODA and Gramex the council concluded, that the due to the special conditions on the relevant market the agreement would not restrict competition. The Council emphasized that the agreement on the contrary will cause that the radio and television stations will have a counterweight to KODA and Gramex’ very strong position, which could have a profitable influence on the negotiations.

As regards the competition in the mutual relationship between the radio- and television stations the Council emphasized that both KODA and Gramex operates under an equality principl which means, that the radio- and televi-sions stations do not compete on how high royalties they pay to respectively KODA and Gramex.

On this background the Council concluded, that the notified agreement do not have an appreciable effect on competition and therefore falls outside the scope of the prohibition in Section 6(1).