The recent civil action filed by JCDecaux, MRM – Brandstore and Red, alleging unfair competition in the area of outdoor advertising (out-of-home), generated a strong reaction from DreamMedia.
The action, which is being analyzed by the Judicial Court of the District of Porto, involves the exploitation of more than 400 advertising faces, allegedly in an illegal situation, and promises to shake up the sector.
In response to the news published by EcoDreamMedia clarified, this Monday, November 3rd, that it was already aware of the Precautionary Procedure previously filed by JCDecaux, which was “outright rejected by the Porto District Court”, highlighting the lack of basis for JCDecaux’s allegations, it also highlights in a statement.
Ricardo Bastos, CEO of DreamMedia, quoted in the same note, criticized JCDecaux’s stance, stating that “it is extraordinary that it is precisely the company that, for more than four decades, held a near monopoly in the advertising exploitation of street furniture in Portugal, rising up against a competitor that has only contributed to introducing effective competition”.
DreamMedia also revealed the conclusion of an investigation that points to irregularities in JCDecaux’s activity, indicating that the company operates in at least 33 municipalities without any valid contractual title. “In the remaining cases, old or expired contracts remain, some of which were signed in the 1990s”, stated DreamMedia representatives, highlighting that this situation generates undue revenue at the expense of the public treasury.
The company argued that JCDecaux uses disinformation tactics and that, instead of adopting a program to regularize its situation, it opts for a “strategy of attack and media noise”. DreamMedia, in the same document, makes a point of reaffirming its commitment to legality and business ethics, promising to continue investing in the modernization of outdoor advertising and the enhancement of local communities.
The position taken by the company led by Ricardo Bastos comes in response to the civil action filed by JCDecaux, MRM – Brandstore and Red against DreamMedia and BigOutdoors, accusing them of unfair competition in the area of outdoor advertising (OOH), as reported by the Eco.
This action focuses on the alleged exploitation of more than 400 illegal advertising faces, without due municipal licensing and without payment of the corresponding fees. According to the three companies, this practice resulted in the loss of millions of euros for local authorities and compromises urban planning and environmental balance.