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Media coverage of sport from the perspective of antimonopoly law

Lapšanský, L. Media coverage of sport from the perspective of antimonopoly law. Právny obzor, 104, 2021, special edition, pp. 22-43

https://doi.org/10.31577/pravnyobzor.specialissue.2021.02

Media coverage of sport from the perspective of antimonopoly law. Sport constitutes a very attractive content of TV broadcasting. The interest of viewers/listeners/readers in following sports events is one of the main motives of media monitoring, which brings about fierce competition among the media for procurement of the highest quality content possible and subsequently for gaining the largest possible number of viewers/readers. The competing media also resort to practices restricting competition: they conclude agreements restricting competition of their parties, abuse their dominant position or merge with each other, at the risk of creating or strengthening their dominant position. The competition authorities have successfully addressed the competition concerns brought by the strong wave of concentrations and agreements restricting competition in the TV sector since the turn of the millennium, without getting in the way of the application of new technological and commercial procedures.

Key words: competition, media, sport

Introduction
Sport and the media are closely linked. Those wishing to watch a sporting event and not being able to physically attend often resort to a means that allows them to follow it live or at least to gain
ex post
the fastest and/or best available information or analysis of the event. And precisely this role is played by the media.
In order to be able to perform this task the media need to create conditions for the production of a sports communication
1)
, i.e. content that they will offer to viewers/ listeners/readers in the area of sport. Whereas the activity offering a sports communication to viewers/listeners/readers is mostly implemented in the free competition regime and the interest of viewers/listeners/readers in following sports events is one of their main motives for media monitoring, fierce competition for the procurement of the highest quality content possible and subsequently for gaining the largest possible number of viewers/readers naturally takes place among the media. In order to succeed in this competition, the media also resort to practices that are problematic from the perspective of antimonopoly law: they conclude agreements restricting competition between the parties, abuse their dominant position or merge with each other despite the risk that they will create or strengthen their dominant position.
The relevance of this topic is determined by the growing symbiotic relationships between sports and the media. Sports are a source of very attractive media content that has a unique potential to attract new viewers/listeners/readers and media coverage becomes the most important source of income for sports organisations, clubs and athletes.
2)
The growth of income from the media coverage of sport (especially from the sale of broadcasting rights) over the last two decades has been enormous in terms of both volume and share in overall funding of sport (with revenues from professional sport accounting for 40 to 60% of this income)
3)
. The share of costs of acquisition of broadcasting rights to sports events on total costs of TV stations of the acquisition of rights to broadcasting content is also very large (up to 40%)
4)
.
These anticompetitive practices of undertakings (agreements restricting competition, abuse of a dominant position, concentrations) are regulated by the Slovak Act on the Protection of Competition (Act No. 187/2021 Coll. is currently in force) (hereinafter "APC"), in the Treaty on the Functioning of the European Union (hereinafter "TFEU") and in the Council Regulation (EC) No. 139/2004 on the control of concentrations between undertakings. However, because of the general nature of these norms, the decisive source of positive law is the decision-making practice of the competition authorities, i.e. the Antimonopoly Office of SR (hereinafter "Office") and the European Commission (hereinafter "European Commission" or "Commission").
The structure of this paper corresponds to the chronology of individual phases of standard competition analysis that assumes the definition of a relevant market, determination of the position of undertakings - participants of an anticompetitive conduct on a relevant market, and finally the evaluation of admissibility of the conduct of the undertakings. Therefore, we will gradually address the issues of the place that sport has in the phase of definition of relevant markets in the media sector; (2.) the weight of broadcasting rights to sports events in the assessment of a dominant position of an undertaking on a relevant media market (co-)created by sport; and (3.) the assessment of business practices on relevant media markets (co-)created by sport (4.).
5)
1. The place of sport in defining the relevant media markets
The competition authorities had the opportunity to provide their opinions of the issue of boundaries of the relevant markets in the phase of creating preconditions for the production of a communication, in which sport played the role of a decisive or co-decisive element. Sport played this role in defining the relevant markets both in the phase of creating preconditions for the production of a communication (1.1.), and in the phase of offering a communication (1.2.).
1.1. The place of sport in defining the relevant markets in the phase of creating conditions for the production of a communication
1.1.1. Market for provision of sports news
In its decision
SITA/TASR
6)
concerning a suspicion of an abuse of a dominant position TASR, the President of the Office established the definition of relevant markets in the area of agency news provision by saying that there were
relevant markets for provision of
:
a) home news in Slovak language, comprising information about domestic political events (information about the work of the parliament, ministries and other central authorities of the state administration, government and the President), cultural and social events, information from science, medicine, information about weather etc. and regional news;
b) international news in the Slovak language, comprising reports prepared by editors sent abroad, translations of reports issued by foreign agencies and translations of selected articles from the foreign press;
c) economic news in the Slovak language covering economic events both in Slovakia and worldwide;
d) sports news in the Slovak language bringing results, interviews and commentaries on foreign and domestic sports events;
e) visual news offering a visual service relating to events and persons from the policy, economy, culture, sport and social life in Slovakia and worldwide;
f) the relevant market for TOP news in the Slovak language providing the most interesting information and curiosities from areas such as policy, culture, sport, social life in Slovakia and worldwide (paragraphs 23 to 30).
In relation to the provision of all partial news services (except for visual news), the provision of news in the Slovak language as a criterion in defining the geographic boundaries of a relevant market reflects the fact that the customers of these services prefer them in the Slovak language.
1.1.2. Markets for granting the rights to broadcast sports events
In order to fill up their broadcasting structure, broadcasters are forced to buy a considerable amount of television or radio programmes produced by independent producers. Although broadcasters can produce the programmes themselves, the relevant market will only be a market for programmes produced by independent producers, because programmes produced by broadcasters are mostly used by themselves and not sold to the operators of other competing stations.
7)
Since a large majority of programmes produced by independent producers can be regarded as copyright work
8)
, the relevant market will be a market for granting the rights to broadcast these programmes to broadcasters.
The European Commission in its decisions regularly publishes the list of its previous decisions relating to the boundaries of relevant product and service markets for granting the rights to broadcast or transmit the individual types of TV programmes
9)
. The content, the rights to which constitute a number of separate relevant markets, is sport, and in particular football. According to the European Commission there are
relevant markets for granting the rights to broadcast
:
a) feature cinematographic films,
b) football events that are played regularly throughout every year
10)
and in which teams from a certain State participate (especially the national league, the national cup, the Champions League and the UEFA Cup),
c) football events with longer periodicity and with participation of national representation teams (European Championship, World Championship);
d) other sports events;
e) TV programmes and
f) TV channels.
The market for granting the rights to broadcast football events that are played regularly throughout every year and in which teams from a certain State participate, can be distinctly separated from the market for granting the rights to broadcast football events with longer periodicity and with participation of national representation teams (European Championship, World Championship), among others because these rights are granted by different organisations.
The rights to broadcast football events that are played regularly throughout every year and in which teams from a certain State participate, cannot be substituted by the rights to broadcast other (non-football) sporting events (that are played regularly and in which teams from a certain State participate), because of the higher attractiveness of football and hence incomparably higher price of the rights to broadcast them.
As regards to the geographic delimitation of the market for granting the rights to broadcast football events that are played regularly throughout every year and in which teams from a certain State participate, this market basically remains national. As regards to the national league and the national cup, due to the specific nature of these events, determined by cultural factors and requirements of national viewers, the spatial reach of these events is limited to the territory of the State, where they are played. Finally, the rights to broadcast national league and national cup matches are in reality acquired by television operators from the respective State. But also, as regards the Champions League and the UEFA Cup, according to the valid UEFA rules relating to the granting of broadcasting rights, these rights are mostly sold at the national level. Only relevant markets for the sale of rights to broadcast football events with longer periodicity and with participation of national representation teams (European Championship, World Championship)
11)
could have a multinational scope.
Markets for granting the rights to broadcast other sports events are defined, because although broadcasting of non-football sports events are not a determinative factor in the decision-making of television viewers about subscription of programmes offered by a particular TV broadcaster, it nevertheless remains an important factor of the attractiveness of their offer. This group of sports events comprises, among others, the Olympic games, large tennis tournaments, boxing matches or motor races. In terms of the characteristics of these events as well as in terms of price conditions, the granting of rights to broadcast these sports events can be distinguished from the granting of rights to broadcast other programmes. From the perspective of television viewers, these sports events are events of pan-European importance. Moreover, the rights to broadcast some of these sports events are acquired for the whole of Europe and some broadcasters, such as Eurosport, always acquire the rights to broadcast these sports events for the whole of Europe or at least for several countries and to broadcast them in several countries. But even these circumstances do not justify the territorial delimitation of a relevant market as a pan-European market. The reason is that although the rights to broadcast some sports events are granted for the whole of Europe, later they are sold, irrespective of the TV signal transmission technology, for the territories of individual States or language zones. Therefore, the market for granting the rights to broadcast sports events other than football matches and also remains spatially delimited by the territories of the individual States or language zones.
The common reason for defining these markets as separate relevant markets was the incapacity of the grantors of rights to these types of TV programmes to quickly switch to the granting of rights to broadcast other types of TV programmes
12)
, i.e. the negative result of the test of substitutability of goods or services, on the supply side.
The Commission specified that in the market for granting broadcasting rights to TV channels, the granting of rights to pay sports TV channels did not form a separate relevant market - it was only a segment of the market for granting broadcasting rights to TV channels
13)
. Nevertheless, the Commission assesses the impact of the business practices also separately for this market segment
14)
.
1.2. The place of sport in defining the relevant markets in the phase of offering a communication
1.2.1. Markets for pu
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