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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
Contingencies
CHANNEL INCREASE THROUGH ACCESS TO A MUTLIPLE DIGITAL LICENSE
A sentence handed down on November 27, 2012 by the Third Chamber of the Supreme Court (Appeal 442/2010)
canceled the the Council of Ministers’ resolution dated July 16, 2010 which assigned each of the Digital Terrestrial
TV (TDT) channel licensing companies (the operators), including MEDIASET ESPAÑA (previously GESTEVISION
TELECINCO) and SOCIEDAD GENERAL DE TELEVISION CUATRO, S.A., a multiple digital license with national
coverage, increasing the channels it manages to four.
This assignment (annulled by the sentence) was enacted by virtue of the application of regulations approved by the
National Technical Plan for Digital Terrestrial TV, which starting in 1,998 regulated the transition from analogical to TDT
transmission, finalizing in 2010. The government verified that the companies to be granted the multiple channels had
complied with all the necessary requirements and obligations inherent in proceeding with the appealed assignation in
order to make the transition toTDT.
The sentence was based on the fact that when the the multiple channels were assigned, the General Law on Audiovisual
Communication (LGCA, published one month prior to the appealed Agreement) was applicable; it states that additional
channels assigned under each license must be granted through a public bidding process.This dilemma might have been
circumvented with the mere introduction of a provision by the LGCA granting continuity to the agreement prior
to its enactment.
The Supreme Court views the main obstacle to be a mere formality, and theTDT’s original basis was never questioned,
and therefore, the eventual assignment of multiple channels to each operator was not a complex issue; this was
manifested during meetings held with the pertinent ministries; thus, it is expected that these issues will be resolved in
upcoming weeks.
PROCEDURES RELATIVE TOTHE LATE PRESENTATION OF THE ACTION PLAN
On August 2, 2011, the Comisión Nacional de la Competencia (CNC - anti-trust authorities) handed down a resolution
on dossier SNC/0012/11 (ConcentraciónTelecinco-Cuatro) in which it declared Mediaset España responsible for a very
serious violation of Anti-Trust Law, as it did not present an Action Plan (including commitments with the CNC) within
the established deadline, setting a fine of 3,600,000 euros.
This resolution was appealed before the National Court of Justice as part of ordinary civil lawsuit 474/2011.A sentence
handed down on January 8, 2013 overruled it, upholding the imposition of the fine.
Another appeal was filed before the Supreme Court; the Company has solid expectations that it will receive a favorable
ruling: either an annulment, or a significant reduction in the amount of the fine.
The main arguments against the Supreme Court ruling as well as the CNC’s resolution are as follows:
•
The alleged Action Plan infraction did not take place: it was presented within the CNC’s established deadline.
•
In the event that it was indeed presented late, the period did not exceed a month and thus, the Group complied
with the commitment with the CNC (that the Action Plan was a mere development outline); thus, no general or
underlying interests were harmed.
•
Therefore, rather than a material lack of compliance, the Group was guilty of a simple procedural error, and therefore
did not breach anti-trust laws; consequently, Law 30/1992 of the Legal Regime of Public Administrations and Common
Administrative Procedure laws are applicable.
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