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Brazil: Telefonica offered strict timeline for buyout clashes with CADE

By  |  December 18, 2013

Spain-based telecom giant Telefonica has reportedly been given 18 months to reduce its control of the Brazilian wireless market before CADE issues sanctions against the firm.

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    According to Reuters, the authority will require Telefonica to either sell its stake in domestic telco Tim or to seek a partner for its Brazil unit Vivo.

    CADE first issued concerns against Telefonica after the company acquired the parent firm of Telecom Italia, which owns Tim. Such dual presence in Brazil raised issues with antirust authorities, and in recent weeks Telefonica was speculating to lodge legal action against CADE regarding the matter.

    But such a timeline will allow Telefonica to divest Tim, which reports say is Telefonica’s preferred method to handle the situation.

    Full Content: Reuters

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