The Competition Commission is scrutinizing the merger between Tamedia and Edipresse. A preliminary examination of the merger has revealed indications that a dominant market position could be created or strengthened in the commuter newspapers in French-speaking Switzerland, the Competition Commission announced on Friday. In particular, the merger could create or strengthen a dominant position in the readership and advertising markets of commuter newspapers and in the area of early delivery of newspapers in French-speaking Switzerland. The remaining areas, and therefore the majority of the planned merger, are not affected by the in-depth review, as Patrik Ducrey, Deputy Director of the Competition Commission Secretariat, told the NZZ on request.
Weko spokesman Patrik Ducrey explained in response to an inquiry whether the merger of the commuter newspapers 20 Minutes and Le Matin bleu would eliminate competition for advertisers and thus increase prices. But the merger could also create or strengthen a dominant position in the early delivery of newspapers in French-speaking Switzerland. For these reasons, the ComCo is subjecting the merger to an in-depth review, which, according to Ducrey, will take a maximum of four months.
Neither Tamedia nor Edipresse are surprised by the Weko's news. Tamedia spokesman Christoph Zimmer said on request that an in-depth examination had been expected. This would not result in a delay in the merger schedule. The Competition Commission must now decide by the beginning of November. Both Zimmer and Edipresse CEO Tibère Adler assume that the ComCo will give its approval. In March, Edipresse publisher Pierre Lamunière had already said that he did not dare to imagine that the Competition Commission would allow this merger to fail. There is no plan B for this eventuality. The first step in the merger of Edipresse and Tamedia is planned for January 1, 2010. The only area where Tamedia would like to act as quickly as possible is the commuter newspaper. This merger could be initiated after the Weko decision.
When the two media companies announced their merger at the beginning of March, there was talk of 20 redundancies at the French-speaking commuter newspapers. Zimmer now expects significantly fewer redundancies due to natural fluctuation and the prospects that have arisen for those affected.
Tamedia intends to acquire 100 percent of the shares in Presse publications SR SA (PPSR), which essentially comprises the Swiss activities of the Edipresse Group, from Edipresse in three stages. The takeover is intended to create the fourth-largest Swiss media company, which includes the Tages-Anzeiger, the Berner Zeitung, Le Matin, 24 Heures, 20 Minuten, Le Matin Bleu, the television stations TeleZüri and TeleBärn and the radio stations Radio 24 and Capital FM.