The Prohibition of the Proposed Springer-ProSiebenSat.1-Merger: How much Economics in German Merger Control?

Springer-ProSiebenSat.1-Merger

41-42) distinguishes over-the-counter newspapers from subscription newspapers.³
This market delineation has been accepted by the German courts in the past⁴ but, nev-
ertheless, received a controversial reception in the academic literature (Wessely 1995:
140-160; Dewenter/Kaiser 2005; Sacker 2005; von Wallenberg 2007). Sticking with
the market definition of the competition agency, the reader market for over-the-
counter newspapers is almost monopolized by AS’s BILD, which is the only over-the-
counter newspaper distributed nation-wide (see table 1). The market for newspaper
advertising, by contrast, comprises all newspapers irrespective of the way they are
offered.⁵ Here, AS reaches a market share of about 50 %, with BILD alone having a
market share of more than 35 % (see table 1). AS doubles the share of the second
largest newspaper (up to 25 %). P7S1 is not involved in the newspaper markets.

Table 1: Relevant Newspaper Market Shares in 2004

*: Since 2006 belonging to BV Deutsche Zeitungsholding owned by the British
Mecom Group; ⁺: belonging to Gruner+Jahn.

Data source: compiled from Bundeskartellamt (2006).

Consequently, the proposed merger of AS and P7S1 does not lead to an addition of
market shares, neither on the TV markets, nor on the newspaper markets. There are,
however, two other markets where both companies are doing business. On the market
for online advertising, AS accomplishes a market share of less than 5 % with P7S1
attaining less than 1 %. Regarding the German market for the production of TV
broadcasts (shows, magazines, etc.), AS accomplishes a market share of less than 10
% through its subsidiary Schwartzkopff TV. P7S1 remains under 1 % if in-house pro-

³ According to the Bundeskartellamt (2006: 41-42), subscription newspapers differ from over-the-
counter newspapers regarding broadness and depth of coverage, design and illustration as well as
the focal points of news and reports.

⁴ See WuW/E BGH 1854, 1857 "Zeitungsmarkt München" and WuW/E BGH 2425, 2428
"Niederrheinische Anzeigenblatter".

⁵ The Bundeskartellamt considers separating newspapers published on Sunday but that does not
change market positions fundamentally.

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