The CNMC initiates disciplinary proceedings against Telefónica for the purchase of DTS

By: MRT Desk

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The CNMC initiates disciplinary proceedings against Telefónica for the purchase of DTS

The National Commission of Markets and Competition (CNMC) has opened disciplinary proceedings against Telefónica of Spain for a possible breach of the commitments entered into during the purchase of DTS (formerly Sogecable) in April 2015.

The CNMC explained this Wednesday in a statement that this resolution is part of the surveillance work carried out to verify that Telefónica complies with the commitments it assumed for the approval of the exclusive control of DTS.

The regulator authorised the concentration in 2015 on condition that Telefónica complied with a series of commitments that were extended for an additional period of three years until 2023.

In July 2021, the CNMC urged Telefónica to change the offer of Fusion+Smartphone products, which incorporates pay TV services, given the existence of indications of a possible breach of these commitments.

Specifically, the offer made it possible for Telefónica customers to rent mobile phones in exchange for a monthly fee of three euros in general and a stay of 36 months.

Therefore, Telefónica failed to comply with its commitment to refrain from including permanence obligations directly or indirectly associated with pay-TV services, whether or not bundled, with telecommunications services.

With the opening of this file, a maximum period of three months begins for the instruction and for its resolution by the CNMC.

This is not the first time that the CNMC opens disciplinary proceedings against Telefónica for non-compliance with the obligations and commitments it accepted and that led the entity to authorize the purchase of DTS.

In fact, the CNMC sanctioned the company last September with five million euros for violating the obligations related to the information it has to submit so that it is possible to analyze the effective “replicability” of retail commercial offers that include its own “premium” channels in its wholesale pay TV offer.

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