Page 68 - MEDIASET ESPAÑA / 2013. Financial Statements, Management and Corporate Governance Report

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MEDIASET ESPAÑA COMUNICACIÓN, S.A.
NOTES TOTHE FINANCIAL STATEMENTS FOR THEYEAR ENDED DECEMBER 31, 2013
(Thousands of euros)
Considering the crux of the problem, however, it is strictly formal in nature, and therefore is subject to amendment by
the government; therefore, MEDIASET ESPAÑA COMUNICACIÓN, S.A. considers a satisfactory outcome as likely. In
any event, the potential effects of this contingency have been taken into account when testing asset impairment of the
goodwill assigned to the free-to-air TV business cash-generating unit (Note 6).
Procedures relative to the 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 (Concentración Telecinco-Cuatro) in which it declared Mediaset España Comunicación
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 thousand 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 Company complied
with CNC commitments (that the Action Plan could simply consist of a development outline); thus, no general or
underlying interests were harmed.
• Therefore, rather than a material lack of compliance, the Company 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.
• It is thus not considered necessary to apply the terms of the Anti-Trust Law: a procedural error cannot be considered
a very serious violation, and is thus unworthy of a 3,660 thousand euros fine, as this sum is totally disproportionate
to the infringement in question.
• Finally, the fine is a frontal violation and breach of the principles which prohibit reformatio in peius (Articles 89.2
and 113.3 of Law 30/1992), since the CNC only chose to initiate disciplinary proceedings against Mediaset España
Comunicación, S.A. once it had decided to appeal the CNC-approved Action Plan, and not when the alleged violation
took place.
Thus, the accompanying balance sheet does not include a provision for this contingency, as the Company’s directors and
legal advisors do not consider it likely that this risk will materialize.