6 August 2021, Budapest – The Hungarian Competition Authority (GVH) has published its draft report on the sector inquiry performed on the Hungarian television broadcasting and media service market for public consultation. Market players operating on the relevant market will have opportunity to submit comments regarding the document until the beginning of September.
The GVH initiated a sector inquiry last year on the market of media services and television broadcasting since market signals indicated that television media service providers offered their services to larger broadcasters at such discounted prices that put smaller undertakings at a significant competitive disadvantage. This can even lead to the distortion or restriction of competition on the market, which could limit the choice of Hungarian consumers to a smaller number of service providers and programme packages with worse price-value ratios.
The sector inquiry of the GVH investigated the television broadcasting market primarily to understand the pricing decisions of market players and the value chain behind these decisions. In addition to the information gained from public databases, the Authority also processed data submitted by undertakings, conducted market research, and consulted trade associations.
Based on the results of the inquiry, the GVH prepared a draft report, which it published on its website for public consultation as standard in such cases. The draft provides a detailed demonstration of the value chain of programming, the market players present on the various levels, the structure of the market, and the trends shaping the market. The contracting practices in place between individual market players have also been revealed, primarily focusing on the relationship between media service providers and television broadcasters. The GVH formulated multiple recommendations that could increase market competition and thus consumer welfare.
Before the final report is adopted, the GVH provides opportunity for stakeholders to submit written comments regarding the contents of the report until 3 September 2021. The draft is available on the website of the GVH:
https://www.gvh.hu/dontesek/agazati_vizsgalatok_piacelemzesek/agazati_vizsgalatok/jelentes-tervezet-a-musorszolgaltatas-es-musorterjesztes-piacan-lefolytatott-agazati-vizsgalatrol (in Hungarian)
GVH Press Office