Regulatory Conditions for Media Mergers and Their Oversight-A Case Study of Dafu Media Acquiring Kbro Cable
Date Issued
2012
Date
2012
Author(s)
Tai, Chih-Chuan
Abstract
In recent years, many cases of media mergers and acquisitions happened in Taiwan. After Want Want Group merged CTV and CtiTV, Dafu Media acquired Kbro Cable. NCC approved Dafu Media merged Kbro Cable in 2010, but also asked Dafu to promise 15 requirements. Therefore, it caused the dispute of the right of hearing a merger and acquisition case of NCC. Opponent thinks that NCC cannot examine the case of merger and acquisition because there is no rule of law which authorizes NCC to hear a case of equity transfer. However, according to the rule of law in Taiwan, the establishment of the system operator has to be permitted by NCC. Therefore, on the basis of the spirit of law, NCC can examine the media merger cases.
When NCC approved the merger, NCC asked the corporation to promise 15 requirements. The requirements can divide into 6 categories: provide the digital CATV service, invest on digital content industry, reduce the price of watching CATV, the limitation of vertical integration, the limitation of horizontal integration and the competition of MVPD. Each requirement has to conform to the principles: promoting the development of industry of communication, protecting the consumers’ right and stepping up the multi-culture.
The most important of all, NCC must supervise the corporation to complete the requirement. According to the interview, Dafu did not complete some requirements. For example, after NCC approved the merger, there are no native channels on MOD. It reveals that the corporation did not fulfill its promise. Therefore, if NCC approved the merger, NCC ought to supervise the corporation strictly.
Subjects
CATV
Dafu
Kbro
Media Merger
Media Group
Type
thesis
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