Brussels, 25/01/2005 (Agence Europe) - The Commission has authorised plans for the British WPP Group plc to buy the American Grey Global Group Inc., for a sum in the region on 1.5 billion dollars. Both companies are present on the advertising and public relations markets. Further to its investigations, the Commission has noted that the operation would mainly affect the fields of commercial communication and media buying. Commercial communication covers a vast range of activities, such as advertising, strategic reflection and advice, public relations, consumer relations management, market image, identity and branding. Media buying involves the purchase of time and space in a variety of media for advertising campaigns, media planning and consultation.
The effects of this merger were analysed on the markets of fourteen States of the European Economic Area: Austria, the Czech Republic, Denmark, Germany, Hungary, Italy, the Netherlands, Norway, Poland, Portugal, Slovakia, Spain, Sweden and the United Kingdom. Following its inquiries, the Commission concluded that there were no risks to competition, because “many powerful competitors” will always be present in the two sectors in question, according to a press release. Furthermore, investigation of media buying in Germany turned up the existence of a separate market for large-scale media buying services for big advertisers, but that this will not affect competition. Six major international players, with considerable financial backbone, will continue to be active on the specific large-scale media buying market. Lastly, the current market structure, the compensator power of the media owners such as television channels, newspapers and magazines, and the strength of the remaining competitors will help to offset the increased purchasing power of the new entity, the Commission states.