Advanced Television

Telefónica hit with €6 million fine

March 10, 2023

From David Del Valle in Madrid

Spanish telco Telefónica is facing a €6 million fine for breaking legal conditions imposed by competition and markets regulator CNMC in respect of its Movistar Fusión convergent offer.

The regulator has imposed that fine on the grounds that Telefónica was obliging subscribers to sign permanent clauses and for charging them by cancelling the subscriptions before the end of the permanent period.

The sanction comes one and a half months before the telco is set to be released from the obligation to meet the CNMC limits.

Telefónica will not have to share premium TV content, namely football TV rights, and channels from April 30th when the regulator CNMC will lift the conditions imposed on the company for the acquisition of Canal Plus.

CNMC’s remedies, imposed on Telefónica in 2015 to guarantee free competition following the acquisition of Canal Plus, will come to an end next month, absolving the company from compliance. Initially, the conditions were for five years with an additional extension to three further years. In 2020, Telefónica urged the CNMC to lift the limits, but the CNMC approved a three-year extension.

The obligation to share premium or exclusive content with third parties made Telefónica open up its football TV rights to Vodafone and Orange. In recent months, Telefónica has sought the suspension of the limits on the grounds that it is no longer the dominant operator.

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