Competition authority gives green light for advertising alliance

The Weko's decision is a source of media-policy controversy. This is particularly the case because various publishers and the Publishers Association had already made it clear in the run-up to the Weko decision that they would fight this advertising alliance between a private media company and the state-affiliated companies Swisscom and SRG. Their main argument was that this advertising alliance would lead to further distortion of competition. In fact, the Weko expects the joint venture to become one of the strongest advertising marketers in Switzerland, it said Wednesday. Nevertheless, the Weko assumes that the advertising market will continue to function because there are other strong competitors, Weko Director Rafael Corazza said in response to a question. He added that the fact that Swisscom and SRG, two companies close to the state, are involved played no role in the decision. "We treat them the same as private companies."

With regard to the accusation of distortion of competition, Corazza refers to the mandate of the Weko. The decisive question for the authority in assessing the merger was whether it would create a dominant position that would eliminate competition, says Corazza. The question of distortion of competition, on the other hand, did not arise. If there is a distortion of competition, it already exists today as a result of the advertising activities of the fee-financed SRG, which is politically intended.

SRG not allowed to use new advertising platform for the time being

The decision is viewed differently according to the interests at stake. Swisscom, SRG and Ringier, for example, are delighted. The new advertising marketer has the chance to make a difference in the Swiss advertising market, said Swisscom CEO Urs Schaeppi, for example, on the sidelines of a media conference at the ETH in Lausanne. There was also no reason to worry, he added. The new advertising platform will be open to everyone. For Ringier, the joint marketing organization has cleared a first important hurdle. "But we still want to wait for the assessment of the Federal Office of Communications (Bakom)," said Ringier spokesman Edi Estermann when asked.

In September, Bakom launched an investigation into whether SRG's participation in the advertising alliance impairs SRG's programming mandate or significantly restricts the scope for development of private publishing houses and media providers. If Bakom finds this to be the case, it can propose specific requirements for SRG to the Federal Department of the Environment, Transport, Energy and Communications (Uvek). In order not to be presented with a fait accompli, Bakom has issued a precautionary measure. For the time being, SRG is not allowed to use the new joint advertising platform, as Bakom announced on Wednesday. The ban applies until the conclusion of the supervisory procedure, but at the latest until March 31, 2016.

Publishers call for federal intervention

The advertising marketer Goldbach Group, Aktion Medienfreiheit and the Swiss Media Association (VSM), on the other hand, are disappointed with the Weko decision. The VSM regrets the Weko decision, it says in a media release on Wednesday. However, the decision does not come as a surprise, as the Weko was not able to take into account the distortion of competition. The VSM is therefore now calling for Bakom to intervene. Bakom should either prohibit the alliance in this form or ensure that user data and SRG content are passed on, or allow all interested partners to participate in the alliance, the statement said. According to a statement, Goldbach Group regrets that the Weko made its decision despite major concerns from the companies not involved in the advertising alliance. It will now be up to the supervisory authorities and politicians to ensure that the joint venture does not put the other media companies at an additional disadvantage, it adds. For Aktion Medienfreiheit, the "absurd decision of the Weko" shows little liberal understanding of the economy. In order to prevent the further advance of state-owned companies into commercial areas, appropriate measures must be taken as soon as possible, writes the campaign in a statement. Now it is up to the politicians.

Swisscom, SRG and Ringier announced in mid-August that they intend to merge their advertising marketing activities in a joint company (Werbewoche.ch reported). By combining their advertising sales, the three companies say they want to stand up to international online giants such as Google and Facebook in the advertising market. While Swisscom is contributing not only technological expertise but also the marketing rights to its online platforms and Swisscom TV, Ringier and SRG are ceding the marketing rights to their high-reach media offerings. As a result of the merger in the advertising sector, Ringier left the Swiss Media Association at the end of August (Werbewoche.ch reported).