Vodafone has accused telecommunications rival Telefónica of violating the commitments made during its merger with DTS, the media company behind Canal+, by refusing to allow access to the Moto GP and Formula 1 feeds for the season tournament, beginning this Sunday.
“This is a serious blow, as we believe we have the right to hire a feed, for which we intend to pay, according to regulations, and we have been denied the opportunity to do so.” said Vodafone España Legal Director Pedro Peña. In terms of Pay TV access, Telefónica has increased its market share from 72% to 73%. Should this evolution continue, Telefónica could reach 100 percent of the market “in a few years”.
Spanish regulator CNMC’s conditions for Telefónica oblige the company to make 50% of their premium content (including motor sports) available to other operators as part of their wholesale offering. The resolution states that it is these other operators who may determine what Premium content they wish to purchase, stipulating the licensing on an annual or seasonal basis when involving sporting events. Telefónica is not allowed to deny access, unless objective and sufficient cause is given and approved by the CNMC.
Mr. Peña described the situation as one with a “hyperdominant” pay TV operator who has joined a “dominant” telecommunications company, creating an enterprise which “in most EU countries would have been banned fair and square”. The restrictions placed on Telefónica were described by Mr. Peña as “not only weak, lax and benevolent” but also “unenforced”. As proof, he cited a similar situation with first division football, considering this to be a dark spot for the pay TV industry.
Full content: Marca
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