Spain’s National Markets and Competition Commission (CNMC) said on Thursday that it has opened a second investigation into Telefónica for possible non-compliance with the commitments it made when it bought DTS (the former Sogecable) in April 2015.
In a statementthe CNMC points out that it had found indications that Telefónica had breached its commitment not to sign contracts of more than three years to broadcast sports content. However, its contract with the National Professional Football League dated January 19, 2022, relating to the broadcasting rights in Spain of the National First Division League Championship starting with the 2022/2023 season, could have violated this commitment. as pointed out by Competition.
Last year, Telefónica, the largest cable television operator in Spain by number of customers, was fined 6 million euros by the CNMC for commercial practices that violated the terms of the acquisition of DTS in 2015, such as the so-called clauses of permanence in smartphone lease contracts that prevented customers from changing providers.
On April 22, 2015, the CNMC authorized this concentration operation, conditional on Telefónica fulfilling a series of commitments, which were extended for an additional period of three years.
Among them, Telefónica assumed that the contracts for the exclusive acquisition of broadcasting rights in Spain for third-party sports audiovisual content signed by the entity could not allow the exploitation of those acquired beyond the maximum period of three years from the signing of the contract. contract. However, in February 2024 the CNMC already declared the existence of indications of non-compliance with this commitment in the contract between Telefónica and the League of January 2022.
Telefónica signed a contract with La Liga by which it gave it exclusive rights to broadcast, audiovisual exploitation and marketing of certain matches and content of the First Division, intended for its subscribers or clients for private or residential use.
This contract includes the rights corresponding to several lots of the tender organized by the National Professional Football League in November 2021.
The main exclusive rights acquired included, in the first batch, five live matches on each matchday (except three matchdays) of the championship, and, in the second batch, the ten matches corresponding to three live matchdays, for the 2022/23 season. and the following ones.
The CNMC has stressed, however, that the initiation of this file does not prejudge the final result of the investigation.
From now on, a maximum period of three months is opened for the investigation of the file and its resolution by the CNMC.
This resolution, the competition guarantor body has explained, is part of the surveillance work carried out by the CNMC to verify that Telefónica complies with the commitments for the approval of the takeover of exclusive control of DTS.
The objective of the obligations assumed by Telefónica is to preserve competition in the markets affected by this concentration operation.
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