CCA clears media concentration between Antena FM and Obiteljski radio

Although the concentration was approved by the Croatian Competition Agency the proceeding was initiated for setting fines on undertakings involved in transactions in the electronic media sector that have not been notified and have not received prior CCA approval within the meaning of the relevant merger control rules.
In analysing the ownership ties between the undertakings Mega produkcija and Media dom with a number of undertakings and media publishers the Croatian Competition Agency (CCA) found that during 2014 the undertaking Antena FM acquired a 100 per cent share in Obiteljski radio.
Even though such a change in control is regarded as concentration between undertakings its participants failed no notify this transaction to the CCA. Therefore, the CCA called the participants to notify this concentration. The complete notification was received in May 2016.
It is evident from the notification of the concentration concerned and the data available to the CCA that the basic activity of Antena FM is the provision of radio production services, whereas the basic activities of Obiteljski radio are production and broadcasting of radio programmes.
It has been established that the concentration at issue produces effects in the relevant markets of radio broadcasting and radio advertising in the territory of the City of Zagreb and Zagreb County. Before the implementation of the concentration Obiteljski radio was the only one present in this area, whereas Antena FM entered this market by acquisition of control over the former. This is why this merger led to no change in the structure of the relevant market.
With its 15 to 20 per cent market share Obiteljski radio has been the leader in both markets. Yet, the competition constraint is strong – there are seventeen competing undertakings in these markets, HRT – Radio Sljeme, Radio 101, Plavi radio, Radio Kaj and Enter Zagreb being the most significant ones.
After carrying out a thorough analysis the CCA held that this merger does not have a significant effect on competition in the markets concerned and therefore cleared the concentration. No replays have been received to public invitation regarding to this merger.
However, given that Antena FM implemented the concentration without a prior approval of the CCA, the CCA initiated a proceeding for setting fines in this particular case.