Nordic Entertainment (NENT) Group is to be paid around $64M in damages from TV2 Danmark over an ad rebate dispute, settling a case that has been dragging for more than 15 years.
The settlement of 600M Swedish Krona, which Deadline has converted into dollars using a currency converter, is higher than NENT’s annual operating income for 2021.
The dispute concerned TV 2 Danmark’s use of rebates on TV advertising between 2001 and 2010.
The claim was filed on the basis of a 2005 ruling by the Danish Competition Council and eventually found that TV2 had abused its dominant position in the Danish advertising market by offering its adverting customers an annual rebate. This was deemed an infringement of competition law rules and was upheld by the Danish Supreme Court in 2011, causing NENT Group to suffer what it said were substantial losses.
This morning’s settlement was reached after “clarification of several fundamental legal issues,” according to NENT, which runs streamer Viaplay, TV channels and a production company.
“We are pleased finally to conclude this very long process with an outcome that is financially positive for our company,” added NENT Group President and CEO Anders Jensen.
“It also serves as a strong message around the importance of fair competition, and is therefore positive for the broader Danish market.”
The payment will be reported in NENT’s Q1 financial results late next month and comes as the group expands Viaplay into other territories, with 60 planned originals to premiere this year, while it snaps up sports rights.
Yesterday, NENT Group proposed a rebrand to Viaplay Group, which will be made to shareholders in May as it pivots focus to streaming.
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