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Teosto’s pricing model was reformed

In July 2015, MTV Sisällöt Oy submitted to the FCCA a request for action regarding the activities of Säveltäjäin Tekijänoikeustoimisto Teosto ry, a nonprofit performance rights organisation that collects royalties on behalf of songwriters and composers in Finland. MTV alleged that Teosto had abused its dominant market position through its pricing regarding music use compensation for audiovisual content services.

According to investigations by the FCCA, Teosto’s pricing was not technology neutral. Rather, competing actors had had different tariffs. The FCCA concluded that this pricing model could result in distortion of competition and discrimination against providers of paid streaming services vis-à-vis providers of traditional pay-television services.

Teosto changed its pricing model, which the FCCA considered as a move in the right direction. It was not necessary to continue the investigation, but the FCCA may re-examine the matter if there are indications in the future that Teosto’s terms and conditions or other practices lead to significant anti-competitive effects.