RTÉ to alter sales method for adverts on television

RTÉ HAS agreed to change the way it sells its television advertising from July 1st, 2012, following an investigation by the Competition Authority on foot of a complaint lodged by independent broadcaster TV3 in 2009.

TV3 said yesterday that it had been informed by the authority that RTÉ had “provided undertakings” to it regarding its trading scheme of TV advertising.

“The authority is satisfied with the undertakings it has received from RTÉ in this matter as its concerns have been addressed,” stated a letter dated October 11th from John Evans, manager of the monopolies division at the authority, to TV3’s advisers at law firm McCann FitzGerald.

To date, RTÉ has required advertisers to commit a large percentage of their television advertising budgets to the Montrose-based broadcaster.

The percentage has been up to 65 per cent for certain segments of its programming.

Advertisers would receive significant discounts in return from RTÉ.

TV3 complained that this was unfair and amounted to RTÉ abusing its dominant position.

The Ballymount-based station said yesterday that this had cost it more than €30 million in lost revenue over the past five years.

TV3’s chief executive David McRedmond said it would consider legal action against RTÉ for damages in this matter.

“We will wait until we see the enforcement decision but we will certainly consider it as an option,” he said.

The authority said the so-called share dealing is to be “discontinued and abolished” by RTÉ.

Its investigation has ended and its enforcement decision is to be published in “due course”.

RTÉ accused TV3 of misrepresenting the agreement and said that it had reached a “voluntary and agreed position” with the competition body.

“No finding of anti-competitive behaviour has been made against RTÉ,” it said.

“Such powers do not lie with the authority but can be pursued by it through the courts. The authority has opted not to pursue any such action.”

RTÉ said its decision to change its trading system followed a strategic review. It will now look at offering advertisers deals across television, radio and publishing.

Geraldine O’Leary, commercial director of RTÉ television sales, said: “The world has moved on and we are moving away from share-based deals.

“We will do so in mid-year when the systems are fully ready for us to make that change.”