Nordic Entertainment Group (NENT) has to pay approximately $ 64 million in damages due to an advertising discount dispute with TV2 Danmark, which is solving a case that has been delayed for more than 15 years.
The SEK 600 million deal that Deadline converted to dollars via a currency converter exceeds NENT’s annual operating income for 2021.
The dispute concerned TV 2 Danmark’s use of television advertising discounts in 2001-2010.
The lawsuit was filed against the Danish Competition Council in 2005 and ultimately concluded that TV2 had abused its dominant position in the Danish advertising market and offered its advertising clients an annual discount. This was considered a violation of competition law and upheld by the Danish Supreme Court in 2011, causing the NENT group a significant loss.
According to NENT, which manages Viaplay, the television channels and the production company, the agreement was reached this morning “after having clarified some fundamental legal issues”.
“We are delighted to conclude this long process with a financially positive result for our company,” added Anders Jensen, President and CEO of the NENT Group.
“It also serves as a strong message about the importance of fair competition and is therefore good for the Danish market in general.”
The payment is expected to be posted in NENT’s first-quarter financial results late next month and comes after the group expands Viaplay to other areas, with 60 originals slated for a first this year, while it sells sports rights.
Yesterday, NENT Group offered a rebrand to Viaplay Group, to be delivered to shareholders in May, as it focuses on streaming.
Source: Deadline
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