• The Office of Competition and Consumer Protection has submitted competition concern about control takeover by UPC over Multimedia Polska.
• Concentration can restrict competition in many Polish cities.
• Reservations do not decide upon the final resolution in that case.

The transaction members deal with i.e. cable television and Internet access. Due to potential danger to competition, the procedure has been diverted into the second stage of proceedings. The Office of Competition and Consumer Protection had to identify markets influenced by the concentration and examine the shares of UPC and Multimedia Polska.

- The analysis by the Office of Competition and Consumer Protection has proved that the concentration has led to the restriction of competition on the markets concerned with paid-TV services and fixed-line Internet in a number of Polish cities, hence we expressed our reservations on the competition. A trader has 14 days to respond, though he can extend this term by next two weeks – says The President of the Office of Competition and Consumer Protection, Marek Niechciał.

Television

Market research has proved that the traders compete with the suppliers of other kinds of paid-TV services, i.e. satellite television or IPTV but do not compete with the supplier of the terrestrial digital television. Both services differ i.e. with the number of channels. After the implementation of the terrestrial digital television. The distinctiveness of both TV services has been proved by the fact that after the implementation of a free of charge terrestrial television, operators have not noticed a remarkable decrease in the number of clients. It would be the case provided that these both services would compete since, while choosing a product, Polish customers are usually guided by the price.

From a point of view of geography – the most proper market for the operators to run a business and compete with other paid-TV services suppliers, is city area. It is due to the fact that their network range and thus possibilities to compete for the clients on
a specific area.

Having taken into consideration the strength of the members of concentrations on the local paid-TV markets, the Office of Competition and Consumer Protection has decided that concentration can lead to the remarkable strengthening of UPC’s position and restrictions on competition in 15 Polish cities.

The Internet

It is a similar case with the Internet. The traders providing services of the stationary Internet access compete with each other in the areas of particular towns. Moreover, the analysis of the Office of Competition and Consumer Protection has proved that it is required to discriminate between stationary and mobile web access. It is i.e. due to the speed, quality and fixity of a cable and consumers’ preferences who, as the main reason, provide the necessity to use the Internet outdoors (mobile Internet) and the lack of limit (in the case of a non-switched line).

After the takeover of Multimedia Polska, the strength of UPC could lead to the restriction of competition on the markets of the stationary Internet access in 15 cities.

14 days to answer

In cases in which there is a justified probability of essential restriction to competition as
a result of concentration, the President of the Office of Competition and Consumer Protection has issued restrictions on a planned transaction to either a trader or the traders participating in the concentration. The restrictions are justified and do not decide on the final result of the proceeding.

In accordance with the rules and regulations, the traders have 14 days to respond to the reservations. That term can be extended at their request by next two weeks.

Additional information for the media:

Press Office UOKiK
pl. Powstańców Warszawy 1, 00-950 Warsaw
Phone.: 22 55 60 430
E-mail: biuroprasowe@uokik.gov.pl

Twitter: @UOKiKgovPL