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CWC/NTL: Competition Commission clears merger

United Kingdom
22/03/2000
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On 22nd March Stephen Byers published a Competition Commission report on the proposed merger between NTL Incorporated (NTL) and the cable interests of Cable & Wireless Communications plc (CWC). The Competition Commission has concluded that the proposed merger may be expected not to operate against the public interest.

The reference had prompted strong expressions of concern about a number of issues, in particular the merger's effect on the wholesale market for pay-TV content and on the balance of market power between platforms and, in particular, between cable and satellite services. There was also concern about the effect on telecommunications services. However, others saw the merger's scope to enhance competition, especially with BSkyB: in this market, the combined company would account for 27% of all subscribers to pay-TV in the UK, whereas BSkyB, which uses satellite transmission, has a share of approximately 50%.

The Competition Commission found that the merger should have no direct effect on competition between the two parent companies as they operate in different geographical areas. There was no evidence that the merger would potentially reduce direct or indirect competition, such as competition amongst cable operators themselves in innovation or the copying of best ideas.

(DTI Press Release P/2000/200)

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