Fox Networks U.K. Offices Inspected in EC Probe of Sports Rights -- 2nd Update
12 April 2018 - 12:37AM
Dow Jones News
By Joe Flint and Valentina Pop
A 21st Century Fox Inc. office in the U.K. received a surprise
inspection Tuesday by European Commission investigators, who are
conducting an antitrust probe into sports rights and distribution
of sports content.
The European Commission acknowledged "unannounced inspections"
on Tuesday in several member countries at the offices of companies
"active in the distribution of media rights and related rights
pertaining to various sports events and/or their broadcasting."
In a statement, the commission didn't name the companies
involved and said the inspections are a preliminary step into
"suspected anticompetitive practices."
On Wednesday, Dutch cable operator VodafoneZiggo Group BV said
it too had been subject to inspection by European regulators. The
company said in a statement that it was cooperating fully and was
unable to comment further. VodafoneZiggo is a joint venture between
U.K.-based Vodafone Group PLC, the world's No. 2 wireless carrier
by subscribers, and U.K.-based Liberty Global PLC, the world's
biggest international cable company.
In a statement, Fox Networks Group, a division of 21st Century
Fox, said it "is cooperating fully with the EC inspection." The
statement offered no further details.
The investigators entered the Hammersmith, England, offices of
Fox Networks Group, according to a person familiar with the matter.
FNG's main businesses in Europe are sports and TV
entertainment.
"The Commission has concerns that the companies involved may
have violated EU antitrust rules that prohibit cartels and
restrictive business practices," it said in its statement. "The
fact that the Commission carries out such inspections does not mean
that the companies are guilty of anti-competitive behaviour nor
does it prejudge the outcome of the investigation itself."
The Daily Telegraph earlier reported on the raid.
21st Century Fox and News Corp, the parent company of The Wall
Street Journal, share common ownership.
Fox Networks Group is an umbrella unit for Fox's global
television operations. In Europe, through 21st Century Fox's
separately held interest in Sky Broadcasting, which has platforms
in the U.K., Germany and Italy, Fox Networks Group has rights to
several popular sports. In the U.K., Sky carries several sports
including the Premier League soccer, Formula One, cricket and
darts. In Germany, Sky has the rights to the popular German soccer
league Bundesliga and shares rights to the Union of European
Football Associations. Fox's Sky Italia recently lost the rights to
Italy's Serie A league but is a rights holder of the Union of
European Football Associations.
The unit also owns a controlling 51% ownership stake in
Eredivisie Media & Marketing CV, which holds the collective
media and sponsorship rights to the Dutch Premiere League. The
remaining 49% is owned by the Dutch Premiere League and the
production company Endemol Shine Group, which 21st Century Fox has
50% interest in.
21st Century Fox has been facing drawn-out scrutiny from U.K.
regulators for its proposed $16 billion deal to acquire full
control of British pay-TV giant Sky PLC. The Sky deal has already
received approval from the European Commission.
Write to Joe Flint at joe.flint@wsj.com and Valentina Pop at
valentina.pop@wsj.com
(END) Dow Jones Newswires
April 11, 2018 10:22 ET (14:22 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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