On Friday, the Spanish antitrust watchdog imposed a 6-million-euro fine on Telefonica for participating in commercial practices that violated the terms of its 2015 acquisition agreement for cable TV operator DTS. Examples of offending practices included permanence clauses on smart phone leases, Reuters reported.
The CNMC, the regulatory agency for such matters, has determined that Telefonica’s commercial offerings violated certain conditions set at the time of the company’s merger approval. For example, certain lease contracts associated with smart phones featured permanence clauses that limited clients’ ability to change providers.
Related: EU Set To OK Deutsche Telekom, Orange, Telefonica, Vodafone Advertising JV Set
Telefonica is committed to fostering competition in the pay-TV market for at least eight years. To this end, the company has agreed not to impede customers from switching to other providers during this period. The duration of this condition was originally set at five years and extended by another three in 2020.
CNMC said clients who contracted the Movistar Fusion package from April 11, 2021 and took on a smartphone lease, were subject to permanence conditions and a penalty for early discharge over a three-year period. With these contracts, Telefonica restricted clients’ ability to contract similar services with other competing operators.
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI