The CNMC Confirms Their Doubts Surrounding The Purchase Operation of Canal + by TelefóNica

Already rumored for weeks that the CNMC would not easy to telephone the purchase of Canal +. And it is that large rivals, Vodafone and Orange, had already warned of risks to authorize an operation that would leave in the hands of Movistar more than 80% of the market of pay-TV in Spain.

And it seems now that the theses of the operator’s rivals have penetrated on the regulator, which has announced the second phase of the study of this operation exposing his opinion. The CNMC has been very clear: the operation would entail the disappearance of the major competitor of Movistar in this market, threatening competition, helping also to Movistar to strengthen its position in the fixed and mobile.

In the eyes of either the purchase of Canal + by Telefonica transaction might endanger competition in a market in which Movistar is becoming stronger. But as we never know where will leave the CNMC remained we know your direct opinion, which has come in the form of a press release which announces the second phase of the study of the operation.

Greater ability to purchase rights and restriction of the wholesale supply of channels are just a few of the risks of buying

This time the regulator has followed the thesis majority, putting in doubt the convenience of allowing this operation. Since the CNMC highlight with the purchase of Canal + Movistar he would lose to their biggest rival, both in terms of number of customers of pay TV but also when it comes to rights.

From the regulator also mentioned the possibility of Movistar to bag their own services with the of Canal +, with the risk that stops provide certain channels to third party operators, as it is the case now with Canal + Liga. Also that packaging would also the strengthening of the markets of broadband fixed and mobile operator, to include television services not available in other operators.

Conditions for purchase to view

With these statements, it seems increasingly clear that Telefónica easy won’t have it. Discarded without conditions purchasing approval we will have to see if the direct CNMC prohibits the operation, which is unlikely, or if you set conditions so that it can carry out. In this case also remains to be seen the conditions, that may be as hard to the operator is put back in its intentions. Moment the regulator will hear both parties directly involved as rivals of Movistar, so toca wait.

That, at least, personally I have clear is that on this occasion, by many hobby that can be you to Movistar, here no one has given him nothing. The operator is putting on the table the money that other operators have been unwilling or able to put, in a very clever move to improve its convergent offerings. Anyway, it is also undeniable risks that would mean approval without conditions of purchase, so the CNMC will have to hairs, Although it will be difficult to satisfy all the parties involved.