The European Commission has warned of significant competition issues in Telefónica’s planned purchase of Canal+ in Spain.
Telefónica, already holds 22% of Canal+ in the Spanish market, and has agreed to purchase another 22% from Mediaset. It’s looking to take the remaining 56% from Prisa at a cost €750 million.
In a document published in the last few days the Commission warns the acquisition is likely to have a severe impact on competition because the combined share of the market held by those involved would exceed 80%.
Brussels says four markets are likely to be affected: the distribution retail pay-TV services under the Movistar TV and Canal + brands; the distribution of TV content, the wholesale supply of TV channels and the packaging of communications services.
The final decision will fall to the Spanish regulator CNMC, which requested the right to handle the case, despite it falling under European jurisdiction.