CNMC keeps an eye on Telefónica-Mediapro deal


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Juan Fernandez Gonzalez

| 24 January 2016




Spain's market authority has cast doubt on the consequences for TV competition of the Telefónica-Mediapro football deal.



The Comisión Nacional de los Mercados y la Competencia (CNMC) has already requested both companies to modify some of the terms in the agreement, as it leaves Movistar+ with almost entire control of football broadcasting rights in Spain.

According to inside sources quoted by Reuters, there “might be signs of breach of the commitments accepted by Telefónica when it bought Canal+”. Such commitments are aimed at protecting competition as the resultant platform, Movistar+, owned nearly three quarters of the country's pay-TV market.

“Telefónica might have broken the rule of not buying any exclusive broadcasting rights of any pay-TV networks produced by other companies. We have told them to look over the agreement in order to give a chance to their competitors,” explained the source.

After buying a La Liga rights package for €750 million, Telefónica negotiated with Mediapro to acquire its beIN Sports La Liga channel for €2.4 billion, thus gaining exclusivity over almost the entire national competition.

On the same day the billion-deal was announced by Mediapro, Telefónica's main competitors Orange and Vodafone stated their disapproval and asked for the country's watchdog to intervene.