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German Media Deal Facing New Hurdles

German antitrust authorities have objected to plans by newspaper group Axel Springer to acquire the country?s biggest broadcaster ProSiebenSat1. Citing concerns that ?two symmetrical companies? in the TV advertising market would lead to less competition, the German Cartel Office objected to the plan that would have made Axel Springer second only to media giant Bertelsmann in the German market.

But the German Cartel Office objected, arguing it could lead to competition between "two symmetrical companies" in the TV advertising market. The concern is that competition between the two giants would be ineffective. Axel Springer owns the tabloid newspaper Bild, while ProSiebenSat1. has four TV channels and a showlist that includes the popular Desperate Housewives.

TV and publishing giant Bertelsmann owns the RTL television business, the world`s largest book publisher Random House, and the giant magazine publisher Gruner + Jahr. It also owns BMG, the umbrella of Sony BMG Music Entertainment and BMG Music. Germany`s Association of Journalists has urged that the takeover be blocked to prevent a "monopoly" on media opinion.