Press Release 05/2022
April 11, 2022

The AdC has decided not to oppose the operation by JCDecaux of the outdoor advertising concession in Lisbon, after the company undertook commitments to prevent competition concerns that would result from the operation by a single operator.
The commitments undertaken include the sub-concession to a competitor of 40% of Lot 1 of the Lisbon outdoor advertising concession.
The concession involves the installation and operation of advertising on urban furniture, namely on Mupis in the streets and at bus stops, for 15 years. It was promoted by the Municipality of Lisbon following the end of the previous outdoor advertising concessions, which were operated by JCDecaux and Cemark.
By concentrating the operation of urban furniture advertising in a single operator, unlike the previous concessions, the current concession would result in less diversity of alternative operators in Lisbon and, consequently, in possible barriers to competition in the outdoor advertising market, which would translate into potential price increases for advertisers.
These competition concerns take on added importance, not only because a 15-year concession is at stake, but also because any nationwide street advertising campaign will necessarily involve advertising communication on the streets of Lisbon. 
The commitments undertaken by JCDecaux, by including a divestment involving the sale, under a sub-concession regime, of a very considerable part of the aforementioned concession, contribute towards maintaining a diversity of operators and a supply structure roughly similar to the current one, with two alternative operators exploring outdoor advertising in Lisbon. 
Consequently, these divestment commitments were considered sufficient, proportional and adequate to solve the competition problems identified by the AdC and which would result from the concentration of all outdoor advertising in Lisbon, the object of the concession contract, in JCDecaux.
Most of the media agencies, through which a large part of the demand for advertising in Portugal passes, considered that the sub-concession in favor of MOP would eliminate the competition problems that would result from the merger, ensuring a competitive alternative to JCDecaux's offer. 
The merger was notified on July 15, 2021, and JCDecaux submitted a commitment proposal on January 28, 2022, which was submitted to a market test. Subsequently, on March 14, 2022, JCDecaux submitted the final proposal of commitments, in a revised and strengthened version that benefited not only from the comments and observations collected by the AdC in the market consultation, but also from additional diligences carried out with the Media Agencies.
APAN - Portuguese Advertisers Association and APEPE - Portuguese Association of Outdoor Advertising Companies, as well as JCDecaux's competitors, DreamMedia, Cemark, MOP and APSmedia, participated in the process as interested third parties.