Brazil regulator sees problems with AT&T/Time Warner merger

Paterniano Del Favero
Agosto 23, 2017

Together with Chile and the US, Brazil is the only local market which hasn't yet issued a formal decision about the operation, while the other 16 markets in which Time Warner and AT&T are operating have already green lit the merger. Now, the regulatory agency's court has to decide on the subject.

"Both Sky and Time Warner have significant market power", CADE said in its statement.

Cade's report showed particular concern about the merger's consequences on content and network commercialisation, as SKY could be favoured with advantageous commercial agreements with Time Warner's networks.

Brazil's anti-trust regulator is objecting to the proposed $85.4 billion (€78.5bn) merger between AT&T and Time Warner. The new company would also have the capacity and incentive to discriminate against competitors in both markets, which could weaken the competitive environment.

"We believe CADE's statement reinforces USA consumer concerns presented to the Department of Justice and should help convince them to reject the merger in the United States". The court may also approve it with restrictions, imposing remedies that remove the identified competition problems.

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