Anatel issues Sky Brasil with temporary Time Warner information exchange ban


Brazil’s National Telecommunications Agency (Anatel) approved a precautionary measure to prevent SKY Brasil  from participating in business with Time Warner until the regulator expresses its position on the merger with AT&T (which owns the DTH operator).

The decision includes prohibition of agreements and contracts with direct or indirect transfer of information with competitive significance on the Brazilian pay TV market between SKY and Time Warner capable of affecting the businesses of the DTH operator, its subsidiaries and the pay TV market in the country.

Counselor Leonardo de Morais explained that the agency continues to await the decision of the Administrative Council of Economic Defense (Cade) on the merger and that the precautionary measure acts in a preventive way to avoid possible infractions to the SeAC Law. De Morais said they applied a “Chinese Wall” so that companies do not exchange information.

Article 5 of the SeAC Law, which regulates the sector, bans telecommunications companies from having more than 30% stake in content distribution companies. The purchase of Time Warner by AT&T, for $ 85.4 billion, was announced in October 2016.