Consumer watchdog investigating GAAGO over lack of approval to operate

The Competition and Consumer Protection Commission says an enquiry into the RTÉ and GAA joint venture has been launched

PAY PER VIEW: Matthew Donnelly of Tyrone is interviewed by Gráinne McElwain of GAAGO, in the company of former Donegal footballer Michael Murphy Photo by Brendan Moran/Sportsfile

GAAGO is under investigation by the Competition and Consumer Protection Commission (CCPC) for breaches and expansions of its broadcasting activities.

The consumer watchdog told the Irish Examiner that an enquiry into the RTÉ and GAA joint venture has been launched after it became clear that it did not have the appropriate approval to operate a domestic pay-per-view service.

Consent by the commission for GAAGO had been granted six years ago, but not for a domestic pay-per-view platform, which the CCPC must approve, by legislation – on the basis that it is not anti-competitive to other operators within the Irish market.

Senior executives from Croke Park and the state broadcaster were asked at a Joint Oireachtas hearing on Wednesday if GAAGO had approval by the CCPC to operate its controversial service.

Declan McBennett, RTÉ Group Head of Sport appeared to answer that it had, before accepting that it had not.

In a statement to Irish Examiner Sport, the CCPC said that both the GAA and RTÉ were assisting in its “ongoing” investigation.

“Earlier this summer the CCPC opened an enquiry into GAAGO when it became apparent that the activities of the joint venture may have been extended beyond those notified to and cleared by the CCPC in 2017,” said the commission.

“The CCPC has pro-actively engaged with the GAA and RTÉ on this matter.” 

The commission went on to explain that the approval for GAAGO was given back in 2017, only as a service to provide GAA coverage to international markets – GAAGO is now one of the most dominant players in Ireland.

“On 18 July 2017, the CCPC cleared the proposed formation of GAAGO Media, a joint venture between RTÉ Commercial Enterprises DAC (RTÉ) and the Gaelic Athletic Association (GAA),” it continues.

“Under this joint venture, GAAGO would hold certain international digital media rights to GAA events and would show these events via an online subscription service.” 

The commission added: “As this engagement is ongoing, the CCPC can make no further comment at this time.” 

Mergers over a certain financial threshold must be notified to the competitions commission for review as required by law, through the Competition Act 2002 (amended).

Central to its investigation into RTÉ and the GAA, the commission will establish if the merger and rollout to Irish audiences could substantially lessen competition in the market – something which independent stations like Virgin Media have said it does.

The CCPC  must decide whether to clear GAAGO, clear it with conditions, or if has ongoing concerns about the business, it has the legislative power to block it – a move which would prove disastrous to the €4m revenue generating business.

If the CCPC eventually clears the service, with conditions, to operate within the domestic market, it would do so through a strict monitoring of the platform, either through its own office or through independent trustees.

Should the commission ultimately approve GAAGO as a competitive joint venture, it would then be free to operate without conditions going forward.

What is common practice, however, is that the commission orders changes in how joint ventures operate, by ordering them to review, extend or change their commercial activities over time – adding more uncertainty to the future of GAAGO.

As things stand, RTÉ and the GAA failed to gain approval before it expanded the activities of the GAAGO function as originally set out in 2017 – despite its obligation to notify the CCPC of its considerable increase of services into the domestic market.

Crucially, the commission must be notified and approve such a transaction, on the basis that there has not been a substantial lessening of competition in that market.

The GAA said: “We have engaged with the CCPC, kept them updated and have provided information to them as they’ve requested. We will continue to work with them as required."

RTÉ did not comment on the issue when contacted by the Irish Examiner.