Nordic Entertainment (NENT) Group will have to pay TV2 Denmark about $ 64M in damages for an ad discount dispute, settling a case that has been dragging on for more than 15 years.
The 600M Swedish kronor settlement, which converted the deadline to dollars using a currency converter, exceeded NENT’s annual operating income for 2021.
The dispute involves the use of TV2 Denmark rebates in TV commercials between 2001 and 2010.
The lawsuit was filed based on a 2005 decision by the Danish Competition Council, which eventually found that TV2 had abused its dominant position in the Danish advertising market by offering an annual discount to its advertising subscribers. It was deemed a violation of the rules of competition law and was upheld by the Danish Supreme Court in 2011, causing substantial losses to the NENT group.
According to NENT, which operates the streamer ViaPlay, a TV channel and a production company, the settlement was made this morning “after clarifying a number of basic legal issues.”
Anders Jensen, President and CEO of NENT Group, added, “We are finally pleased to be able to complete this long process with financially positive results for our company.”
“This serves as a strong message around the importance of fair competition and is therefore positive for the larger Danish market.”
The payment will be reported to NENT’s Q1 financial results later next month, and the group comes along with the expansion of ViaPlay to other regions, including 60 planned originals to premiere this year, when it snatches away sports rights.
Yesterday, NENT Group proposed a rebrand to ViaPlay Group, which will be made available to shareholders in May as it focuses on streaming.