French antitrust watchdog Autorite de la Concurrence Wednesday withdrew its approval of French pay-TV company Canal Plus's acquisition of smaller rival TPS, saying the company hasn't respected the conditions attached.

The Autorite de la concurrence fined Canal Plus Groupe, owned by media giant Vivendi SA (VIV.FR), EUR30 million for its failure to respect some "essential" conditions linked to the merger of the two pay TV firms in 2006 and ordered Canal Plus to file a new application for approval of the transaction within a month.

The authority said Canal Plus and parent Vivendi had signed 59 commitments aimed at maintaining an even playing field on the pay TV market.

Canal Plus flouted undertakings to make its channels available to rivals and maintain their quality, which were essential to protecting competition, the authority said in its decision.

In a statement, Canal Plus called the authority's decision "unusual" and "disproportionate" and said it will take any action it deems necessary.

"It's obviously not possible to question a merger that happened five years ago," Canal Plus said.

Vivendi declined to comment.

-By Ruth Bender, Dow Jones Newswires; +33 1 4017 1754; ruth.bender@dowjones.com

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