CNMC opens sanction file against Telefónica for possible breach of commitments when buying DTS

Among others, it should avoid including obligations of permanence to its clients, associated with pay television services.

CNMC opens sanction file against Telefónica for possible breach of commitments when buying DTS

Among others, it should avoid including obligations of permanence to its clients, associated with pay television services

MADRID, 21 Dic. (EUROPA PRESS) -

The National Commission for Markets and Competition (CNMC) has initiated a disciplinary proceeding against Telefónica de España for a possible breach of certain commitments that it acquired when it bought DTS (formerly Sogecable) in April 2015.

This resolution is part of the surveillance work that the CNMC carries out to verify that Telefónica complies with the commitments for the approval of the takeover of exclusive control of DTS, as explained by the competition agency.

The objective of the obligations assumed by Telefónica is to preserve competition in the markets affected by this concentration operation.

On April 22, 2015, the CNMC authorized the concentration operation, conditional on Telefónica fulfilling a series of commitments. These commitments were extended for an additional period of three years by the resolution of July 9, 2020.

Among them, it was established that Telefónica should refrain from including permanence obligations directly or indirectly associated with pay television services, whether packaged or not, with electronic communications services.

All of this in accordance with the terms set forth in sections 1.1 and 1.1.2 of the commitments to which the authorization of the concentration of Telefónica and DTS was conditioned.

In July 2021, the CNMC declared the existence of indications of non-compliance with said commitments. In this case, it was the Fusion Smartphone product offer, which incorporates pay television services.

Specifically, the offer made it possible for Telefónica customers to lease smart mobile terminals or smartphones in exchange for a monthly fee of three euros in general and a stay, in practice, of 36 months.

Consequently, according to the CNMC, said offer contained certain provisions contrary to what was indicated in the commitments regarding the obligation not to apply conditions or practices tending to hinder the change of current or future clients of Telefónica to other operators, both for packaged services which include pay-TV as well as non-bundled pay-TV services.

The initiation of this file does not prejudge the final result of the investigation. A maximum period of three months is now open for the investigation of the file and for its resolution by the CNMC.

NEXT NEWS