SKY Sky

By Patrick Costello

Germany's Federal Cartel Office said Tuesday that it has launched an investigation into Sky Deutschland over its agreement to share with sports-streaming service DAZN the broadcasting of all UEFA Champions League matches in the country.

The cartel office said it is examining whether the deal complies with German competition law. Sky is potentially subject to "particular restrictions" in cooperations, given the broadcaster's standing as Germany's leading pay-TV provider, the cartel office said.

Sky Deutschland is fully owned by Sky PLC (SKY.LN), while DAZN is owned by the London-based Perform Group, which operates sports-streaming services in Germany, Austria, Switzerland, Japan and Canada.

Sky and DAZN divided broadcasting rights for Champions League matches between themselves after Sky acquired the rights in a tender held by UEFA last year for all matches in Germany between 2018 and 2021, the cartel office said.

"We are examining when and in what form the cooperation between the two companies was established and whether the cooperation promotes competition in the interest of consumers or restricts it," Cartel Office President Andreas Mundt said.

Champions League matches have been solely broadcast by Sky and DAZN in Germany since the start of the current 2018-19 season. Some matches are exclusively available online, and there are no longer any free TV broadcasts of live Champions League matches in Germany.

The agreement between Sky Deutschland and Perform could thus further consolidate Sky's market position, said the office.

The cartel office said it would first request information from Sky, DAZN and other market players to investigate the tender procedure for the broadcasting rights, among other things.

Write to Patrick Costello at Patrick.Costello@dowjones.com.

(END) Dow Jones Newswires

October 16, 2018 10:44 ET (14:44 GMT)

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