EC Unhappy About Telefonica’s Canal+ Deal

The European Commission has cast further doubt on Telefonica’s proposed acquisition of Canal+ in Spain, warning that the deal is likely to have a severe impact on competition.

Telefonica already owns 22% of Canal+ in Spain and has agreed to acquire a further 22% of Mediaset, as well as being interested in taking the remaining 56% share from Prisa. The EC warned of significant competition issues in four particular markets: the distribution retail pay-TV services under the Movistar TV and Canal + brands; the distribution of TV content, the wholesale supply of TV channels and the packaging of communications services.

Last month, the Spanish competition authority, the CNMC, also voiced its concerns and said it would conduct its own investigation into the deal (Display Monitor Vol 21 No 46). The CNMC will make the final decision, having asked for right to handle the case.