The CNMC fines Telefónica 20 million for failing to meet commitments in the purchase of a subsidiary.

The National Commission of Markets and Competition (CNMC) has imposed a fine on Telefónica worth 20 million euros for breaching the commitments agreed upon following the acquisition of DTS in 2015. That transaction, on which the CNMC imposed a series of conditions focused on the pay television market, the wholesale marketing of content and channels and access to Telefónica's internet network, represents, ten years later, a substantial fine for the telecommunications giant.

To authorize this transaction, Telefónica assumed a series of commitments, including not imposing any permanence or mobility restrictions on its pay-TV customers. However, from at least August 30, 2021, to April 30, 2023, Telefónica marketed its Movistar Fusión and MiMovistar products with pay-TV and device leasing, including both permanence conditions and penalties for early termination.

For this reason, the CNMC considers that Telefónica has breached the commitments made in the agreement, and has therefore issued the sanction. "These practices contravened the accepted commitments and restricted customers' freedom to change operators," the CNMC added.

In 2023, the CNMC already imposed a €6 million fine on Telefónica for its Movistar Fusión smartphone rental offer. In the current ruling, the CNMC notes that the company extended the practice to other electronic devices and strengthened the permanence conditions.

The reason for the sanction is that failure to comply with the commitments established in a concentration operation constitutes a very serious violation under Article 62.4.c of the Competition Law (LDC).

The CNMC also applies an aggravating circumstance for the repeated commission of violations classified in the LDC, since Telefónica has been sanctioned on several occasions for failing to comply with the commitments underlying the merger transaction C/0612/14. For this reason, the CNMC has imposed a €20 million fine on Telefónica.

"The CNMC reminds that this resolution may be appealed directly to the National Court within two months from the day following its notification," the Commission concludes, summoning Telefónica to respond to the accusations in court.