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CNMC probes Telefónica

November 18, 2024

From David Del Valle in Madrid

Spanish regulatory body, the CNMC is scrutinising Telefónica over a possible breach of competition rules with an investigation into the premium channels offered by Movistar Plus.

This is the second recent legal case started by the CNMC following last week when the regulatory body commenced legal proceedings against Telefónica over a possible breach of the pay-TV football limits imposed on the telco to approve its acquisition of DTS in 2015.

Following those conditions, Telefónica was obliged to open up its premium content and channels to third parties and was banned from acquiring pay-TV football rights for three years.

Its contracts with La Liga in January 2022 may have broken those limits, according to the CNMC. In January 2022 Telefónica and DAZN were awarded the rights to five matches every week, for five seasons, at a cost of €990 million a year. DAZN signed for five years and Telefónica initially signed for three years to avoid breaking the law, and then asked the CMNC for permission for two additional years.

The regulatory body refused to give its approval however. However, to avoid the prohibition, La Liga launched a new public tender for the rights in December 2023 with Telefónica winning them in January 2024 for the two remaining seasons for €520 each season. This is the reason why the CNMC has launched a probe into Telefónica on the grounds that the telco has broken the imposed limits.

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