The Spanish regulator CNMC has initiated a disciplinary file against Telefónica for the agreement it reached with DAZN regarding exclusive rights to Formula 1 for the 2021, 2022 and 2023 seasons.
In a statement, CNMC says that its action is part of the surveillance work to see if the telco breached certain commitments when it acquired DTS (formerly Sogecable) in 2015. These commitments were extended for an additional period of three years by the resolution dated July 9, 2020.
It adds that Telefónica undertook to make available to other pay-TV operators in Spain a wholesale offer of its own premium channels under fair, reasonable, objective, transparent and non-discriminatory conditions and not to acquire or exploit exclusive broadcast or exploitation rights in Spain for TV channels published by third parties.
Referring specifically to the Telefónica-DAZN agreement, CNMC says that in July 2021 it declared indications of non-compliance to the agreement, dated January 2021.
“Telefónica sublicensed to DAZN the exclusive broadcast rights (previously acquired by Telefónica exclusively) of the Formula 1 competitions for the 2021, 2022 and 2023 seasons. Telefónica and DAZN agreed on the conditions under which DAZN allowed Telefónica non-exclusive access to DAZN’s content, and established the limitations for third parties to acquire these rights. The contract also determined the way in which customers who contract Telefónica packages that access DAZN content (computed as DAZN customers for the purposes of calculating the guaranteed minimum cost paid for the acquisition of Telefónica channels with premium sports content) are counted”
CNMC concludes by saying that the initiation of the 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 regulator.
