BZ may participate in 20 minutes

The Appeals Commission for Competition Issues has lifted the ban on the
Competition Commission regarding the participation of the Berner Zeitung (BZ) in the
Commuter newspaper 20 Minuten canceled. This was announced by Espace Media Groupe. In 2003, the Bern-based media company wanted to acquire a stake in 20 Minuten Schweiz AG together with Tamedia via the jointly controlled Express Zeitung AG. The Bernese would have held 17.5 percent, Tamedia the rest. Almost at the same time, major upheavals took place in the Bern media center. Espace Media Groupe acquired a stake in its main competitor at the time, Der Bund. In January 2004, the Competition Commission approved the merger of the former competitors in the Bern marketplace, but at the same time prohibited the Berner Zeitung from acquiring a stake in 20 Minuten. The Competition Commission argued that this would give the group a dominant position in the Bern market.

The Appeals Commission has now overturned this Weko decision. It based its appeal decision mainly on the fact that other types of media and advertising media as well as potential market entrants have a sufficient disciplinary effect. However, it has imposed a condition on Espace Media Groupe not to apply for the concession for the Anzeiger Region Bern in future. Albert P. Stäheli, CEO of Espace Media Groupe, is both satisfied and relieved by the decision, according to a press release: "Although we correctly assessed the market potential of a commuter newspaper at an early stage, we had to stand idly by for three years as 20 Minuten stirred up the market because of the Weko's rejection. The most recent market development has now confirmed what we argued in vain to the Competition Commission three years ago, namely the foreseeable market entry of other free newspapers."

Subject to a possible appeal by the Competition Commission to the Federal Supreme Court, the Berner Zeitung can now implement the participation agreements, which have been suspended for three years, with retroactive effect, according to the press release. The Competition Commission is currently in the process of carefully examining such an appeal, explained Patrik Ducrey, Deputy Director of the Competition Commission, at the request of SDA.