2023-07-31 19:07:27
The National Commission for Markets and Competition (CNMC) has sanctioned Telefónica with 5 million for breaching “again” various clauses of the conditions agreed for the purchase of DTS in 2015 in the pact of the multinational and DAZN to acquire the emission rights of the Formula 1. It is the second fine of the year for breaching these commitments. The previous amounted to 6 million euros and was related to the imposition of permanence conditions in its offers Movistar Fusión. The company that presides Jose Maria Alvarez-Pallete confirms that the sanction will be appealed before the National audiencesince the conditions of the agreement with DAZN “were fully in line with the commitments that Telefónica assumed for the purchase of DTS.”
The commitments, proposed by Telefónica and to which the CNMC, are divided into three categories: commitments related to the Pay TV in Spain; commitments relating to the markets wholesale marketing audiovisual content and television channels in Spain; and commitments related to internet network access of Telefonica. The objective was to resolve the obstacles and mitigate the risks of the concentration operation to maintain effective competition in the affected markets and, although initially they would be in force for a period of five years, in 2020 the CNMC extended them for a period of three years.
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In the middle of this year, Telefónica reached an agreement with DAZN whereby the latter acquired in exclusive Formula 1 broadcast rights for the seasons 2021, 2022 y 2023and which allowed Telefónica to access all the contents of DAZN, the Spanish multinational would violate several of these commitments, according to the CNMC.
The body that runs Cani Fernandez affirms that Telefónica has breached “the commitment 2.9 having excluded premium Formula 1 content from its wholesale offer and having marketed it exclusively in favor of DAZN; commitment 2.9 and Annex 1, having included in the agreement a provision whereby any Telefónica subscriber who receives DAZN content will also count as a DAZN subscriber for the purposes of calculating the CMG (in the framework of the channel offer Telefónica wholesalers in Spain); and commitment 2.10, for including in the agreement clauses that, in one way or another, would have allowed de facto exclusives”.
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