The French Competition Authority on Friday "subject to conditions" cleared the acquisition by the audiovisual group Canal+ of OCS, the pay-TV package of telecommunications operator Orange, as well as its film and series co-production subsidiary, according to a press release. A year ago, Canal+ (Vivendi group) and Orange announced a memorandum of understanding for this transaction. The Autorité says it has given the green light, even though, "in order to remedy the risks of harm to competition identified, the Canal Plus group has made commitments aimed in particular at preserving the diversity of the French film offer".
Indeed, the transaction would have placed Canal+ "in the position of sole pre-buyer of recent French films for distribution in the first paid window". The group has therefore "committed to maintaining an OCS/Ciné+ acquisition team, dedicated to the pre-purchase of first-window French films from French producers, separate from that of Canal+," the Autorité de la concurrence said.
Another risk was that of "possible limitations on the availability of French films in Orange Studio's catalogue on the catch-up television services of free-to-air channels". In response, Canal+ has pledged "not to oppose the transfer of broadcasting rights on a catch-up television service from a free-to-air broadcaster". These commitments are made for five years and are subject to review.
With this acquisition, Canal+ is expanding its offer and strengthening its position against American platforms, while Orange is abandoning content creation. OCS, of which Canal+ already owned a third, had accumulated losses since its creation in 2008.