One of lime and another of sand for Telefónica: fine from the CNMC and closes the purchase of Vita IT

In the last hours, Telephone one of lime and one of sand has been taken. The sand one with him closing of the purchase of the Brazilian digital solutions provider Vita IT. The lime one, with the fine imposed by the CNMC, of ​​5 million euros, for not fulfilling the obligations to which it undertook when it bought DTS, in April 2015.

The purchase of Vita IT has been made through the subsidiary of Telefónica in Brazil, Telefónica Infrastructure and Security (TIS)after it was approved at the end of August by the Administrative Council for Economic Defense of Brazil (CADE), the body with powers for this in the country.

This operation, which strengthens the Telefónica Group in Brazil, considered one of its strategic markets, increases its workforce by 150 employees, those of Viva IT, founded in 2013. It also provides it with a product portfolio made up of various connectivity solutions, mobility, video, virtualization, data centers or managed services.

As to The sanction is imposed for failing to comply with several commitments acquired in said operation, which the operator also voluntarily accepted. Among them, making available to operators an offer of premium channels at prices that allow companies that are their competition to replicate their offers and be competitive. In addition, Telefónica also undertook to send the CNMC information on the offers it places on the market, and to do so periodically.

In July 2020, the CNMC approved an extension of these commitments, according to Europa Press, for three years. This step was taken to continue ensuring competition in the markets affected by the DTS purchase operation, including electronic communications and pay television. But in a resolution at the end of July 2021, a sanctioning file was opened against Telefónica because the Council of the CNMC assured that there were indications that the operator was not complying with its obligation to send information.

Apparently, between May 2015 and, at least, June 2020, Telefónica did not duly contributenot completely, the information that should. The data provided was also not in the format that the CNMC had stipulated. So the CNMC considers that the operator «has hindered the task of monitoring commitments and the early detection of possible breaches related to the replicability of the commercial offers of third-party operators«.

Given that Telefónica does not comply with the provisions of the commitments it acquired in the purchase of DTS, as a concentration operation, and by virtue of the provisions of the Law for the Defense of Competition (LDC), it has been determined that the operator has competed a very serious infraction, for which the CNMC fined it 5 million.

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