Movistar faces a sanction: the reason? Permanence in Fusion

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On occasion or other, we have seen how different operators have had to face possible sanctions in Spain due to the competition regulator in our country, such as the National Commission for Markets and Competition (CNMC). For example, a few months ago, we found out how Movistar managed to overturn a fine of 6 million euros that the CNMC had imposed on it.

Well, now, the regulatory body has once again opened a disciplinary file against Movistar due to a possible breach of the different commitments acquired within the Telefónica and DTS (former Sogecable) operation in April 2015. So we are going to see in detail what does this mean.

Purchase of DTS by Telefónica

It all started in April 2015, when the National Commission for Markets and Competition gave the go-ahead for the concentration operation, that is, the purchase of DTS by Telefónica, as long as a series of commitments were met. Among them, the telecommunications company had to ‘refrain from including permanence obligations directly or indirectly associated with pay-TV services, whether bundled or not, with electronic communications services’.

These commitments were extended for a period of three more years due to the resolution of July 9, 2020. As indicated by the CNMC, in its surveillance work to verify that the company complies with these commitments, it has decided to open a disciplinary file against Telefónica. All for a possible breach of the commitments that the operator signed in said operation. Something that is specified in the terms already provided for in sections 1.1 and 1.1.1 of the commitments to which the Spanish operator undertook to be able to close the Telefónica/DTS concentration operation.

Movistar fine

Issues with persistence in Fusion

To be more exact, the CNMC mentions the fact that Movistar had to avoid including different permanence obligations for its customers, which were directly or indirectly associated with pay television services. The offer they have studied is Fusion + Smartphone from the operator. In it, Movistar customers could lease different mobiles in exchange for a monthly fee of 3 euros ‘in general’ and a stay of 36 months.

Well, precisely the content of said offer had permanence commitments that did not comply, according to the CNMC, with the obligation of the telecommunications company to ‘not apply conditions or practices tending to hinder the change of current or future Telefónica customers. to other operators’, that is, in establishing these durations of permanence.

Although, for the moment, it has only been opened disciplinary file for this possible breach. Therefore, it must be clear that the simple fact of opening the file does not mean anything for the final result of the investigation. From now on, a period of three months opens for the investigation of the file and, above all, for its resolution by the National Commission of Markets and Competition.

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