Telefónica faces €6 million fine for DTS case

Spanish market regulator the CNMC has sanctioned Telefónica a fine of €6 million following a breach of commitments it made when it acquired pay TV operators DTS in 2015.

The CNMC authorised the acquisition of DTS following a series of commitments proposed by the Spanish telco which were made valid until April 2020. The commitments were extended for an additional three years by the CNMC, validated by The National High Court in Spain.

This included Telefónica could not apply conditions or practices to its pay-TV customers that might impede their mobility as well as the inclusion of minimum-term obligations

According to CNMC, Telefónica customers who signed up for Movistar Fusión products since its launch on April 11, 2021, both new customers and Telefónica customers who migrated from other products, were subject to a minimum-term and penalty for early termination during the 36-month period imposed by the contract.

As such the watchdog found this violated its commitment to not impose minimum-term conditions on its Movistar Fusión offerings

In a statement the CNMC commented, “failure to comply with the commitments established in a merger transaction is a very serious infringement under Article 62.4.c of the Law on the Defense of Competition (LDC). Consequently, the CNMC has imposed a fine of 6 million euros on Telefónica.”

The CNMC said an administrative appeal can be lodged directly with the National High Court against this decision within two months.