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SPAIN SHOWN YELLOW CARD
The European Commission (EC) has started proceedings against Telefonica, the principal shareholder in DTH digital platform Via Digital, and Sogecable, owner of rival digital DTH operator Canal Satelite Digital, alleging that their June 1999 agreement to exclusively share pay-TV rights on a 50:50 basis for Spanish League and King’s Cup football matches until 2008 was in breach of European legislation.
Mario Monti, the European Competition Commissioner, is reported as declaring “The deal violates European competition rules”. He believes, both competitors might agree to fix a particular price for pay-TV football matches and “monopolise football transmissions”. The EC’s decision came after complaints from Spanish digital terrestrial platform Quiero TV and AOC (the Spanish Cable Operators Association).
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