Merger of 365 miðlar ehf. and Konunglega kvikmyndafélagið ehf.

In its decision no. 25/2014, The merger of 365 miðlar ehf. and Konunglega kvikmyndafélagið ehf., the ICA concluded that the merger does not have detrimental effects on competition nor on diversity and pluralism in the media, cf Art. 62 b in the Act on the Media no. 38/2011. Both 365 miðlar ehf. and Konunglega kvikmyndafélagið are media undertakings, the former a large undertaking in the Icelandic market and the latter a very small one. The conclusion of the ICA is i.a. based on the fact that the income of the Konunglega kvikmyndafélagið ehf. in the first five months of the year 2014 indicate that the share of the undertaking in the markets in which it operates is trivial or negligible. Therefore the merger will not increase the share of 365 miðlar ehf. in these markets.
There are no other grounds for interfering in the merger. Nevertheless the statements of the ICA from its decision no. 34/2013, The acquisition of the music service Tonlist.is by 365 miðlar ehf., from D3 Miðlar ehf., to the effect that 365 miðlar ehf. have a very strong position on many of the subdivisions of the media markets, are repeated and emphasized in this decision. The undertaking is therefore obligated to be careful in its operations, as its contracts and other behaviour can prevent the growth of its competitors and thereby be harmful to competition. However, the present case does not constitute a ground for the ICA to interfere.