IFT investigates possible illicit concentrations in the television and streaming markets

The investigative authority of the Federal Telecommunications Institute (IFT) initiated an investigation for possible illicit concentrations in the markets of open television y tv restricted and of streaming (OTT), according to a notice published in the Official Gazette of the Federation.

Filed in file AI/IO-001-2022, the investigative authority of the Mexican telecommunications and broadcasting regulator reported the “initiation of the ex officio investigation, regarding the existence of facts or conduct that could constitute one or several illegal concentrations , in the markets for the production, licensing, distribution and marketing of audiovisual content that is transmitted through the commercial digital broadcast television service, the restricted television and audio service, as well as through OTT platforms; commercialization of times or spaces for advertising, in programming channels for the restricted television and audio service; and distribution of audiovisual content on internet platforms (OTT), for advertising, all in national territory”.

A concentration, that is, when two or more companies come together through a merger, acquisition or association, becomes illegal if its purpose or effect is to “hinder, diminish, damage or prevent free competition or economic competition” , according to the Federal Law of Economic Competition.

According to the description of the markets investigated by the IFT, the research will cover producers, licensees, distributors and marketers of audiovisual content; as well as to those who market advertising spaces on open television, pay television and streaming platforms or Over the Top (OTT).

The investigating authority of IFT assured that the announcement of this investigation does not prejudge the responsibility of any economic agent. The investigation may not last less than 30 nor more than 120 business days, starting on September 15, 2022, although the term may be extended in four periods of 120 business days.

The IFT has authorized some of the largest concentrations in the audiovisual content markets. In September 2021, the institute approved the merger between Univisión and Grupo Televisa and in August 2022, it also validated the merger between the audiovisual content producers WarnerMedia and Discovery.

(With information from Nicolás Lucas-Bartolo.)

rodrigo.riquelme@eleconomista.mx

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