Trade association files suit against Tamedia: Market abuse in French-speaking Switzerland
The Swiss Trade Association (SGV) is calling on the Competition Commission (Weko) to launch an investigation into the Zurich-based media group Tamedia for violations of the Antitrust Act. The investigation stems from advertising rates in French-speaking Switzerland.
Following the takeover of the Edipresse publishing house by Tamedia and the subsequent merger of the free daily newspapers 20 minutes and Le matin bleu, the SGV criticizes the massively inflated advertising prices demanded by SMEs in French-speaking Switzerland. According to the SGV press release, advertising prices in 20 minutes rose by 45 percent in 2010. This year, they have been raised by a further 10 percent.
Tamedia considers the 20 minutes advertising prices to be fair and attractive, as Group spokesman Christoph Zimmer told SDA on request. Compared to other daily and weekly newspapers, the price of an advertisement per reader reached is significantly lower. Before the merger, the two free newspapers were in the red, not least because advertising prices were significantly below the market price. Before approving the newspaper merger, the Competition Commission examined whether another media company could have taken over one of the two papers. However, none were willing to do so.
SGV: SMEs at a disadvantage
The trade association sees small and medium-sized enterprises (SMEs) in particular as victims of the price increases at 20 minutes. Large customers receive much better conditions for their advertisements thanks to volume discounts and other advantages. In the opinion of the SGV, the price jumps are a clear abuse of the dominant market position of the Tages-Anzeiger empire. The ComCo must now scrutinize the dominant market position of the free newspapers in French-speaking Switzerland and the price abuse. (sda)
