On 1 May 2007, a new ministerial order came into force which changed the mandatory notification regime for 'media mergers'. There are special provisions regarding media mergers under the Competition Act 2002 (the 2002 Act).

A previous ministerial order which came into force on 1 January 2003 specified that all mergers in which one or more undertakings involved carried on media business in the State had to notify the Competition Authority. This resulted in compulsory notifications being made by parties even where there was no substantial media element to the transaction.

The objective of the special provisions regarding media mergers are to avoid a situation whereby such a merger could have a negative effect on diversity in the Irish media. Unfortunately, these provisions were viewed by many as too stringent and they led to a situation where even if an associated group company of one of the undertakings involved in a merger had aspects of its business which related to media, the transaction fell foul of this order.

The new order revokes the previous order and says that it is mandatory to notify the Competition Authority only about certain classes of merger or acquisition. The new order applies to:

• all mergers or acquisitions in which two or more undertakings are involved in a media business in the State, and
  
  
• all media mergers or acquisitions in which one or more of the undertakings involved carries on a media business in the State and one or more of the undertakings involved carries on a media business elsewhere.

The term 'media business' continues to be defined as:

• A business of the publication of newspapers or periodicals consisting substantially of news and comment on current affairs
  
  
• A business of providing a broadcasting service, and o a business providing a broadcasting services platform

If the merger or acquisition does not fall within this definition of media merger, it will only be notifiable to the Competition Authority if it meets certain thresholds as set out in the 2002 Act. This new definition has been broadly welcomed as it eases the obligations on companies to make a notification to the Competition Authority.

For further information please contact Marco Hickey.