WORLD PRESS TRENDS - World Association of Newspapers

GERMANY
In the press sector, a planned merger must be declared in
advance when the turnover reaches a minimum level, which
ranges from Euro 26 million to Euro 51 million depending on
circumstances. This duty to declare does not however enable
the cartel authorities to exert power over or to forbid the merger.
Otherwise, it would imply that all such agreements would
favour or reinforce a pre-eminent position in the market, which
is what the regulations are designed to prevent. There is a legal
presumption that a one-third market share is pre-eminent,
rebuttable with evidence that the annual turnover of the
company concerned is less than Euro 128 million, or in the press
sector, Euro 6 million. The creation of an oligopoly, when only
a small number of suppliers operate in a market, is presumed
in the press industry when the turnover reaches Euro 2.5 million.
Mergers are permissible if the companies can show that
competition is actually being increased, but few succeed with
this argument. Companies have the right to appeal against
decisions to the Federal Ministry of Economy, but it is very rarely
used.
Although the notion of “market monopolisation” is at the core
of the merger control, the legislature never defines the market
concerned. In the government proposal at the time of enactment,
it was established that such a market must be determined for
each particular case, in relation to its concrete, local and
chronological effects. There are two determining “markets” for
the press: readership and advertising. If, for example, the
merging of two publishing companies places them in a preeminent
position in the advertising market, or reinforces their
position in that market, the merger can be totally banned,
regardless of its effect on the readership market. This is of major
importance for agreements between dailies and advertising
papers, for which the regulations pertaining to mergers in the
press also apply.
The readership and advertising markets are themselves divided
into several distinct categories, depending upon the nature of
the paper and whether it is classified, for example, as
subscription; local; “sensational”; or weekly.
Electronic media and printing houses are seen as belonging to
different markets.
Are there plans to pass legislation regulating media concentration
No
WORLD ASSOCIATION OF NEWSPAPERS - WORLD PRESS TRENDS 2003 127