92002E3651

WRITTEN QUESTION P-3651/02

by Antonio Di Pietro (ELDR) to the Commission

(11 December 2002)

Subject: Break-up of the HMC Pubblicità company

It has recently been reported in the press that Cairo Communications (run by Urbano Cairo, the former head of Publitalia) is the new advertising agent for TV La7 (part of the Tronchetti Provera group).

HMC Pubblicità (TV La7's previous agent and 100 % controlled by SEAT/Telecom) is about to be broken up, with over 40 employees having been dismissed in a most irregular fashion (pre-printed letters being signed, the company's situation being presented to the staff as irreversible, and so on).

In view of the close links between Cairo Communications and Publitalia, granting the former a contract for La7's advertising could lead to even greater entrenchment of the dominant positions and the virtual monopoly within Italy's television and advertising sector, which may have a detrimental effect in terms of a further reduction in (if not to say the total disappearance of) forums (already reduced to the bare minimum) in which democratic pluralism and accurate information may be sought.

As proof of this, very little prominence has been given in the press to the La7/Cairo/HMC deal, despite its significance and the effects which it will have in competitive terms and on the television and advertising sector itself.

In view, furthermore, of the fact that other deals have been struck between the Tronchetti Provera and Fininvest groups, including the acquisition of Edilnord and the Pagine Utili company, can and will the Commission take any action with regard to the La7/Cairo Communications deal and the current break-up of HMC, given that the deal further strengthens Mediaset's monopoly and that of its subsidiary Publitalia in the television and advertising sector?

Answer given by Mr Monti on behalf of the Commission

(15 January 2003)

The Honourable Member refers to an agreement between an Italian broadcaster (La7) and an Italian advertisement agent (Cairo Communications) concerning the Italian advertising market.

The Commission is not aware of any complaints regarding the above-mentioned agreement between Cairo Communications and La7, nor has this agreement been notified to the Commission. Furthermore, the Commission has no element, at the present stage, to evaluate whether the agreement in question would be capable to appreciably affect the trade between Member states and, therefore, to come within the scope of Community Competition rules.

The Honourable Member also refers to Mediaset/Publitalia's position on the Italian television and advertisement markets. In this respect, the Commission has no information which could support the conclusion that the agreement between Cairo communications and TV La 7 could, due to certain alleged links between the parties to this agreement and Publitalia, lead to a possible strengthening of the latter's position on the above-mentioned markets.