TV3 HAS welcomed the outcome of “a potentially landmark” investigation by the Competition Authority into how RTÉ sells its advertising. In preliminary findings, the authority said it was concerned that loyalty discounts offered under RTÉ’s “share deal” advertising system “could be anti-competitive”.

RTÉ yesterday stressed that “no finding of anti-competitive behaviour has been made” against the State broadcaster. In response, TV3 chief executive David McRedmond described RTÉ’s remarks as “disingenuous”.

Under the “share deal” scheme, RTÉ grants discounts to advertisers depending on the percentage, or share, of the total television advertising budget that the advertiser committed to RTÉ.

RTÉ agreed in October to end the practice by July 2012 as part of its legally binding undertakings with the authority. Full details of the investigation emerged yesterday as the authority published its “enforcement decision” on the case, which arose from a complaint made by TV3 in March 2009.

In March 2011, the Competition Authority wrote to RTÉ expressing its concern that the system could amount to an abuse of dominance in the market, breaching competition law.

RTÉ objected to its definition of the market, stating it had not considered the competitive impact of digital media or the “spill-over” effect of non-Irish channels. It also claimed that it was not “dominant” in the television advertising airtime market.

But the authority maintained that RTÉ has “unavoidable trading partner” status, which “could be considered as a barrier to expansion for television broadcasters” if advertisers’ dependence on RTÉ meant they did not wish to switch a significant portion of their budget to rivals.

The authority also preliminarily agreed with TV3 that RTÉ’s dual-funding model gives it an advantage over competitors.