BRUSSELS (Reuters) - The European Commission said on Friday it approved Liberty Global's (O:LBTYA) takeover of Dutch peer Ziggo (AS:ZIGGO) but the U.S. cable TV provider must end limits on broadcasters' freedom to offer programmes on the Internet.
"Liberty Global offered to sell Film1, its premium Pay TV film channel," the Commission said in a statement. "Liberty Global also committed to terminate clauses in channel carriage agreements that limit broadcasters' ability to offer their channels and content over the Internet," it said.
Such clauses cannot be used in future agreements for eight years, the Commission said.
Over-the-top companies deliver programming over the Internet and are gaining popularity at the expense of live TV viewing. Liberty Global, which makes 90 percent of its revenue inEurope and is controlled by billionaire John Malone, made the concessions after the Commission said the deal may reduce competition in the Netherlands and result in higher consumer prices.
The deal values Ziggo and its debt at around 10 billion euros (8.20 billion pounds).
(Reporting by Robin Emmott)