Telefonica Fined by Spain Competition Authority Over Formula 1 Deal

By Adria Calatayud

Spain's competition authority fined Telefonica 5 million euros ($5.5 million) over an agreement with streaming platform Dazn for rights to broadcast Formula 1 motor racing, a decision that the company intends to appeal.

Spain's National Commission on Markets and Competition said late Monday that it found the agreement between Telefonica and Dazn was in breach of commitments the Spanish telecommunications company made as part of its acquisition of media company DTS in 2015.

The commission said the agreement meant Telefonica excluded Formula 1 content from its 2021 wholesale channel offer and had clauses that resulted in "de facto" exclusivity. This didn't comply with the company's commitments related to the DTS acquisition, the commission said.

In response, Telefonica said it will file an appeal before Spain's National Court against the sanction, and that its agreement with Dazn to acquire the Formula 1 broadcasting rights was in line with its commitments in relation to the DTS deal.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

August 01, 2023 02:24 ET (06:24 GMT)

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