Orange and Vodafone fight Telefonica, Canal Plus deal
June 20, 2014
From David Del Valle in Madrid
Orange and Vodafone will take part in a legal challenge started by the European Commission over Telefonica’s acquisition of Canal Plus. They argue that the €725 billion deal for 56 per cent stake in the company will damage competition in the market as Telefonica will control 80 per cent of the pay-TV business.
Telefonica is likely to eventually control 100 per cent of the Digital DTH platform as Mediaset will accept its offer to acquire its 22 per cent in the pay TV operator, raising its current 78 per cent to 100 per cent.
Orange says Telefonica is making an abuse of its dominant position by controlling “most of the TV rights on an exclusive basis”. Other companies, like Jazztel, may also be part of the legal proceedings against Telefonica.