Weko examines advertising alliance between Swisscom, SRG and Ringier in greater depth

Over the next four months, the Competition Commission (Weko) will be reviewing a case that has already caused quite a stir in the Swiss media landscape: the as-yet-unnamed joint venture between Swisscom, SRG, and Ringier.

Swisscom, SRG and Ringier want to bundle their advertising sales in the company. Praised by some as an innovative solution and criticized by others as highly questionable in terms of media policy, the plan has caused a lot of turbulence since it was unveiled a month ago. It led to Ringier's withdrawal from the Swiss Media Association (VSM).

Swisscom, SRG and Ringier want to use the joint venture to stand up to international online giants like Google and Facebook in the advertising market. These are strong in data analysis and can thus sell personalized advertising. With their joint venture, the two media houses and the telecom company also plan to offer such advertising tailored to the target group, for example on television. All three companies are to contribute their user data to the new company, Swisscom also its technical know-how, SRG and Ringier their advertising platforms.

But now the Weko must first give its approval: It will "examine the merger in depth," according to a statement on Thursday. The preliminary examination has shown that the cooperation in target group-specific TV advertising could lead to a dominant position or strengthen it. There are indications of this.

Scandal at meeting

The day after the three companies presented their plans, the VSM coincidentally held a closed meeting. According to Ringier, there were "intensive discussions" about the planned new company. The VSM had in fact demanded a ban on advertising for SRG. This was a radical demand that Ringier could not support. As a result, the media company withdrew from the association.

Ringier, SRG and Swisscom stress that their new company is open to others. "We are not a closed club," Ringier CEO Marc Walder said in August. However, he said that for the time being, a customer relationship is envisaged for cooperation with other partners, i.e., no admission of additional shareholders. (SDA/uma)
 

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