The Spanish regulator CNMC has initiated disciplinary proceedings against Telefónica for a possible breach of commitments for its acquisition of DTS (the former Sogecable) in April 2015.
According to CNMC, on April 22, 2015, it authorised 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-TV services, whether packaged or not, with electronic communications services. All this in accordance with the terms established in sections 1.1 and 1.1.2 of the commitments to which the authorisation of the Telefónica/DTS concentration operation was conditioned.
The regulator adds that in July 2021, it declared the existence of indications of non-compliance with said commitments. In this case, it was the Fusión+Smartphone product offer, which incorporates pay-TV services. Specifically, the offer made it possible for Telefónica customers to lease smart mobile terminals or smartphones in exchange for a monthly fee of €3 in general and a stay, in practice, of 36 months. Consequently, the said offer contained certain provisions contrary to what was stated 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 that include pay as well as unbundled pay-TV services.
CNMC concludes by saying that 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.
