Written Answers. - Cable Televison.
Trevor Sargent
Question:
67
Mr. Sargent
asked the
Minister for Enterprise and Employment
his views on whether the involvement of a company (details supplied) in the cable television sector of this country, considering the links between this company and Independent Newspapers Limited, constitutes too much control of media interests in this country; and the regulatory framework, if any, he intends to put in place to prevent over-dominance of Irish media interests.
The principal activity of the company referred to by the Deputy is the provision of cable and multi-channel distributions system (MDS) television services in its franchised areas rather than participation in television broadcasting. Cable and MDS services are subject to regulation by the Minister for Transport, Energy and Communications. The company is owned 50 per cent each by Indepdenent Newspapers plc and a consortium of US investors.
The Deputy may be aware that a recent proposal by the company to further increase its interests in the cable and MDS sector was referred by me to the Competition Authority for futher investigation. In the event, because the proposal did not proceed the investigation by the Competition Authority did not take place. Notwithstanding this, my decision to refer the proposal to the Competition Authority was indicative of my concern that further control of this sector by the company might not be desirable with regard to the common good.
The proposal was notified to me by the parties in accordance with the Mergers, Take-Overs and Monopolies (Newspapers) Order, 1979. This Order provides that any proposed merger or take-over involving enterprises at least one of which is engaged in the printing and/or publication of one or more newspapers must be notified to me. On receipt of a proposal I have the power to:
—refer the proposal to the Competition Authority for investigation,
—on receipt of the report of the Competition Authority I may either allow the proposal to proceed, or if I think the exigencies of the common good so warrant, may make an Order prohibiting a notified proposal either absolutely or except on conditions.
In addition, the Competition Act, 1991 states that any abuse by one or more undertakings of a dominant position in trade for any goods or services in the State or in a substantial part of the State is prohibited. Any person aggrieved as a consequence of an abuse of a dominant position has a right of action in the Courts for relief including damages.
I have recently received Government approval for the introduction in the Oireachtas of a Bill to amend the Competition Act to provide the Competition Authority with additional powers of enforcement.
I am satisfied, therefore, that the present regulatory system when taken with the proposed amendment to the Competition Act, can deal satisfactorily with the concerns raised by the Deputy.
