The Secretariat of Commerce and Industry, through the National Commission for the Defense of Competition (CNDC), forced the company that controls the sports signal TyC Sports to sell its content to companies associated with the Argentine Internet Chamber under conditions of market and not prohibitive. The signature of Clarín Group It refused to market the content with small companies throughout the country and now will have to negotiate immediately.
As he was able to find out The uncovering, TyC asked small cable providers for guaranteed minimums higher than the number of subscribers they have. The guaranteed minimum is a common practice in the sale of content that is done to avoid having to count exactly how many subscribers they have and charge per subscriber; Then a guaranteed minimum is made and they can work with that. The guaranteed minimum they requested was disproportionate and small suppliers could not access it. Therefore, the resolution asks that they be given a reasonable cost per subscriber.
Within the framework of an investigation into alleged anti-competitive conduct, the CNDC issued an opinion advising the Secretary of Industry and Commerce of the Ministry of Economy to adopt a measure for the company Tele Red Imagen SA to cease “any refusal in the provision of the TyC Sports sports signal and the sporting events over which it has exclusive transmission rights”stated the document accessed by this medium.
Likewise, the measure orders that said company offer the aforementioned sports signal and the sporting events that it transmits exclusively to the companies associated with the Argentine Internet Chamber under “equitable commercial, economic and content and market conditions, as established.” the Defense of Competition Law”. It also indicates that the company must send to the CNDC a copy of the contracts established with the companies that make up the Chamber, as long as they can account for the offer of the TyC Sports signal under the established commercial conditions, in compliance with what is indicated.
The investigation began due to a complaint to the CNDC against Tele Red Imagen by the Argentine Internet Chamber, for an alleged refusal to provide the TyC Sports signal to companies associated with the Chamber, since June 2019, throughout the territory. national.
The Argentine Internet Chamber brings together organizations that provide Internet access services, telephony, data center solutions, online content and subscription broadcasting services through physical links. For its part, Tele Red Imagen is dedicated to the production and exploitation of sporting events, the distribution of sporting event content produced by third parties and the production of advertising.
In its complaint, the Argentine Internet Chamber indicated that Tele Red Imagen established sales conditions for TyC Sports that were impossible for the companies that make up the Chamber to meet. which could constitute a violation of the competition regime.
What is anticompetitive conduct?
In defense of competition, anticompetitive conduct is a commercial practice or agreement to limit, restrict, falsify or distort competition or market access, in a way that may result in harm to the general economic interest. In this case, Tele Red Imagen unjustifiably refused to satisfy specific orders for the purchase or sale of goods or services, carried out under the conditions in force in the market in question (current price, among other variables), which is known as refusal of sale or provision of service.
The CNDNC understood that the reported conduct has the potential to affect the general economic interest, by restricting competition and making it difficult for SME companies to remain in the pay television market.
