Hungarian merger effectively blocked by media council

• 21/02/2017
• Articles

On 20 February 2017, the Hungarian Competition Authority (“GVH”) prohibited the merger between Magyar RTL Televízió Zrt., a Bertelsmann Group company, and Central Digitális Média Kft, an online content provider and advertising business.

The transaction was originally notified on 15 October 2016. The prohibition by the GVH follows the 24 January 2017 refusal by the Hungarian Media Council on media plurality grounds to give its special administrative approval to the deal. Under Hungarian media law (Act CLXXXV of 2010 on Media Services and Mass Communication), the GVH is required to seek an administrative approval from the Hungarian Media Council in certain media mergers.  Moreover, the GVH is bound by the resolution of the Media Council refusing a special administrative approval.