All Media Lithuania, part of the Baltic media group TV3 Grupė (TV3 Group), will not be allowed to acquire 100-percent stakes in the three companies operating radio stations M-1, M-1 Plus, Lietus, Laluna and Raduga, as well as in Reklamos Ekspertai, Lithuania’s Competition Council has said.
The competition watchdog has not cleared the transaction, arguing that it would create or strengthen a dominant position or significantly impede competition in the markets for the sale of radio and television advertising.
All Media Lithuania, which broadcasts TV3, TV6, TV8 and TV3 Plius channels, planned to acquire three companies operating the M-1 radio stations and Reklamos Ekspertai, a company that sells advertising there.
All Media Radijas, a company linked to All Media Lithuania, broadcasts Power Hit Radio on radio frequencies and Power Gold radio program online, and sells advertising, while All Media Digital owns tv3.lt and other websites where it also sells advertising.
According to the Competition Council, All Media Lithuania, which has a significant share in the television advertising market, would significantly increase its share in the radio advertising market by joining the largest group of radio stations in Lithuania.
The Council found that the radio stations M-1 and Power Hit Radio, owned by the parties to the transaction, are close competitors in the market for the sale of radio advertising and that their competition is significant and would be eliminated as a result of the transaction. If it were to go ahead, the resulting group would have the largest market share in terms of revenues, control the radio stations with the largest share of the listening time, and would further widen the gap with other competitors.
“The emergence of such a large market player would, in the Competition Council’s assessment, make it more difficult for other radio stations to compete effectively and would leave radio advertising buyers with fewer alternatives to choose from,” the Council stated.
All Media Lithuania had previously offered commitments to sell All Media Radijas, the holding company of Power Hit Radio, and to refrain from the practice of linking TV and radio advertising. However, the Council acknowledged that this would not eliminate the negative effects on competition.
The Competition Council’s decision can be appealed to the Vilnius Regional Administrative Court.
Long-term damage
All Media Lithuania expressed its regret over the competition watchdog’s decision, saying it will cause long-term damage to both the Lithuanian media and the economy.
“The Competition Council has not only dealt a blow to our business, but the impact of such a decision on the future of the media as a whole is much more worrying,” Laura Blaževičiūtė, CEO of All Media Lithuania, said in a statement.
All Media Lithuania is competing with international players, such as Google, Meta, and Yoube, that have a significant share of the Lithuanian advertising market, she said, adding that local businesses need to look for ways to ensure the effectiveness of their advertising and to compete successfully to survive.
"We can only stand up to the global giants by investing in quality and audience-appealing content, employees and solutions that deliver value to advertisers. This requires enormous resources that can only be accessed through expansion. For us, the acquisition of the M-1 group meant an opportunity to increase operational efficiency and fight for audiences by investing more in content quality,” Blaževičiūtė said.
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