French Competition Authority Fines Canal Plus Group For Breach Of Merger Commitments And Requires Unwinding Or Re-Notifying Merger

In an unprecedented decision, on September 20, 2011, the French Competition Authority (Autorité de la concurrence) withdrew the authorization granted in 2006 for Canal Plus to merge with TPS, on the ground that Canal Plus Group subsequently breached some of the conditions of the merger authorization. Furthermore, the Authority imposed a € 30 million fine (about $40 million) on Canal Plus and ordered it either to dismantle the merger or notify it afresh. Never before in France has a merger authorization decision been withdrawn in such circumstances. Even in the few cases where a breach of commitments has been sanctioned in the past, the fines imposed have been very modest in comparison.