Spain’s competition authority, the CNMC, has launched an in-depth antitrust investigation into Telefonica’s acquisition of a majority stake in local pay-TV company Distribuidora de Television (DTS), also known as Canal+, from media conglomerate…
Spain’s competition authority, the CNMC, has launched an in-depth antitrust investigation into Telefonica’s acquisition of a majority stake in local pay-TV company Distribuidora de Television (DTS), also known as Canal+, from media conglomerate Prisa.
“The CNMC believes that the Telefonica/DTS combination could significantly hinder competition in the markets related to pay-television, audio-visual content and electronic communications services,” it said in a statement.
As a result, the regulator is carrying out a thorough review of the available information and arguments that have been presented to decide whether to authorise, impose remedies or veto the transaction.
Telefonica currently owns 44% of DTS, after buying an additional 22% from Mediaset Espana, owned by the Berlusconi family, for €365m (US$496m) a few months ago.
Before that, in May, the Spanish incumbent had agreed to acquire a further 56% stake from Prisa for €750m (US$934m).
However, the deal faced strong opposition from Telefonica’s rival Orange, which argued that the tie-up would give the Madrid-based telco an 80% market share of pay-TV content in Spain and urged the CNMC to veto the takeover or impose significant remedies.
The antitrust watchdog said yesterday that during the second phase of the investigation, it will gather information from a number of operators in the affected markets, while Telefonica and third parties will be given a chance to submit supporting evidence to defend their legitimate interests.
