RTÉ defends ad payment practice after allegations over 'media kickbacks'RTÉ has said it is satisfied that the manner in which it grants discounts to commercial partners is "compliant with competition law" following allegations that the broadcaster gave 'kickbacks' totalling over €50 million to advertising agencies over the last 10 years. However, to recoup the amount lost through the rebate, ad agencies enter into deals with media companies, not just RTÉ, whereby the media company will offer the ad agencies 'volume discounts' based on how much business they bring in. This discount is given to the ad agency by way of a credit note which the ad agency can then use to reduce their bill for future projects with the media company. They claimed the practice "goes to the heart of the RTÉ controversy", describing it as anticompetitive and lacking transparency, as well as potentially causing conflicts of interest for ad agencies. RTÉ added that the total value of these volume discounts offered are not disclosed due to commercial sensitivity.

Source: Irish Independent June 25, 2023 17:11 UTC