On Monday, shares of M6 Group (EPA: MMTP) and Television Francaise 1 SA (EPA: TFFP), France’s two largest private broadcasters, fell after they called off a planned merger due to arising antitrust concerns.
Last week, the companies had claimed that the strategic rationale for the tie-up was eliminated as the competition authorities in France demanded that any proposed deal include the divestment of either one of the M6 TV or TF1 TV channels.
The companies further said that they regret that the Competition Authority did not take into account the extent of the changes and speed sweeping through the French broadcasting sector. Also, they continue to believe that a merger would have provided an appropriate response to the challenges resulting from the increased competition from international platforms.

The combined entity would have created a major new player in French television. It was seen as a possible answer to the surging popularity of US streaming platforms like Amazon Prime and Netflix (NASDAQ: NFLX).

However, French competition authorities had warned that the new entity arising out of the merger would have controlled three-fourths of the country’s television advertising market and given it greater sway in negotiations with distributors.