The CNMC initiates a disciplinary file against Telefónica for the permanence

The Comisión Nacional de los Mercados y la Competencia (CNMC) has opened a sanctioning procedure against Telefónica for breaching commitments acquired in order to approve the purchase of DTS (former Sogecable) in 2015, as announced this month in a statement.

Thomas Osborne
Thomas Osborne
21 December 2022 Wednesday 01:36
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The CNMC initiates a disciplinary file against Telefónica for the permanence

The Comisión Nacional de los Mercados y la Competencia (CNMC) has opened a sanctioning procedure against Telefónica for breaching commitments acquired in order to approve the purchase of DTS (former Sogecable) in 2015, as announced this month in a statement.

The operation obtained the green light with certain conditions, such as that Telefónica did not include "obligations to remain in pay television services", via packages or not, "with electronic communications services" (internet, mobile), something that it has not done .

Specifically, "indications of non-compliance" were detected in the Fusión Smartphone offer, which includes pay television. In April 2021, the company modified its Fusion package offer and added the possibility of renting mobile phones in exchange for a more expensive fee of 3 euros per month. If the client contracted the new product, conditions were applied that implied, "in practice", a 36-month stay with a penalty for early termination.

In this way, "it contained certain provisions contrary to the commitments regarding the obligation not to apply conditions or practices tending to hinder the change of current or future clients of Telefónica to other operators", it is specified. In other words, commitments were breached by making it difficult for customers to go to other companies.

The opening of the file does not prejudge the final result of the investigation, recalls Competition in a note. Now begins a period of up to three months for the investigation of the file and its resolution by the CNMC.