Televisa accepts CFC’s conditions, but no word yet from Iusacell

Televisa has agreed to the conditions that Mexico’s Federal Competition Commission has imposed on its bid for 50 percent of Iusacell. Iusacell, however, has yet to give its assent. It must decide by the middle of this week if it will accept the conditions or challenge the decision in court. The conditions are:

•    If a successful tender offer for a third network does not occur within the next 24 months, the dissolution mechanism will begin. The aim is to avoid delaying tactics or the use of excessive litigation to foreclose entry of a potential competitor;
•    Televisa and TV Azteca cannot discriminate in the sale of publicity, that is they must offer all publicity to any telecommunications firms at current market conditions;
•    Televisa and TV Azteca cannot tie the sale of publicity to the purchase of Iusacell services;
•    Televisa and TV Azteca cannot bundle over the air and cable TV content;
•    Televisa and TV Azteca cannot jointly sell their over the air content to cable operators, and;
•    Televisa cannot participate in Total Play, Grupo Salinas’ triple play product offering in Mexico City since Televisa is owner of Cablevision, a direct competitor of Total Play.

Full content: Reuters

Related content: Competition Law Reform in Mexico: A Note on Joint Dominance

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