Football content for new media platforms a competitiveness goal for Commission
The only way that European citizens will be convinced to invest in third generation (3G) mobile phones and other mobile Internet technology is through the availability of attractive features and services such as football highlights, according to Competition Commissioner Mario Monti. Mr Monti was addressing stakeholders at a workshop on access to audiovisual content and the development of new media in Brussels in July. His speech focussed on the role that attractive content can play in the development of new media markets, and outlined how the Commission's competition policy aims to facilitate healthy and rapid growth in the sector. 'It is clear [...] that although electronic communication networks have tremendous potential there is still a gap between this potential and the growth in demand for new products that we see in reality,' said Mr Monti. He added that while the growth of the new media sector first and foremost depends on the deployment of 3G networks and the availability of Internet-enabled handsets, access to attractive content such as football highlights is also critical. 'Consumers will only invest in the third generation of mobile phones [...] if they are offered attractive new features such as the possibility to watch their favourite player score in the European Championships, for example, if they cannot see it live,' the Commissioner argued. A key factor in making this possible, however, is the attitude and behaviour of those actors who currently control the most attractive content, and the Commission has already undertaken fact-finding activities to assess the situation. 'Our review, which focuses on the availability of rights to major sport events, notably football, has so far shown a generally negative attitude by the relevant players towards making premium content available for delivery over platforms different from the traditional ones,' revealed Mr Monti. Such behaviour may be incompatible with European competition rules, he warned. While the Commission has already taken action in certain areas, for instance to ensure that mobile and Internet rights to show Champions League games are made available by UEFA, many obstacles still remain, and Mr Monti would like to see the development of a more comprehensive and rapid method for intervention in the application of competition rules. He gave two reasons why swift action in the face of anticompetitive behaviour was so necessary, especially in emerging markets such as 3G mobile: 'The first is that new markets are of key importance for the development of the European economy. Their unhindered growth is an essential condition of Europe's ability to stand its grounds in increasingly internationalised markets.' Mr Monti continued: 'The second reason for such focus is that new markets are at risk of particular competition threats. Indeed, in many cases, innovation builds up as a challenge to existing technologies and/or processes. As such, it pits new players against established firms. Such configurations obviously create incentives for the incumbents to try and block or curtail the new dynamics in the market place, to try and maintain their position at the expense of the innovators.' In order to address such issues, the Commission is using an instrument known as the sector enquiry. Such enquiries not only delve deep into the workings of a particular sector, by investigating its legal environment, business strategies, contracts, technical elements and financial conditions, but they also allow for a wide sharing of the results to help stimulate debate among stakeholders. 'Such a comprehensive view is a key step in defining which principles should apply to a given sector,' said Mr Monti. He concluded his speech by promising that the Commission would monitor market developments and act wherever it detected anticompetitive behaviour. 'Availability of attractive content - notably sports rights but also music, film rights and anything that will be considered as attractive content in the future - will continue to be kept under close scrutiny using all the powerful legal instruments that the recent modernisation of the antitrust rules has put at our disposal,' he ended.