Mexico: Televisa’s TV dominance undetermined

Mexico’s telecommunications regulator, the Federal Telecommunications Institute (IFT), said on Friday, March 23, that it cannot determine whether Grupo Televisa has such market power under the conditions set by the court, meaning the broadcaster avoids tougher rules that could have forced it to open up its infrastructure to competitors.

The Mexican Supreme Court in February ordered the IFT to revisit its finding that Televisa has “substantial power” in pay TV, meaning it has the ability to set prices or block competitors.

The decision relieves pressure for Televisa in a part of its business that is becoming more important in the changing media landscape, said Intercam analyst Alik Garcia.

“The reality is that (Televisa) has already stopped being an open TV company and now is a telecommunications and pay TV company,” he said.

Televisa is subject to antitrust measures in Mexico for its high market share in broadcasting, but pay TV is classified as a telecommunication service.

Nonetheless, competitors have argued that Televisa’s commanding lead in pay TV demanded greater scrutiny. The company holds about 60% of the pay TV market in Mexico, according to IFT statistics for the second quarter of 2017.

Full Content: BN Americas

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