Brazilian National Film Agency (Ancine) has requested programmers controlled by Time Warner additional information for the process conducted by the Agency’s Superintendence of Market Analysis to determine the impacts of the SeAC Act on AT&T-Time Warner merger.
The decision was taken by Ancine’s board of directors after analyzing the technical note prepared by the Superintendence of Market Analysis – and sent to the Administrative Council for Economic Defense (CADE) – in which it concludes that the approval of the merger and the consequent vertical integration can result in anticompetitive effects in Brazilian pay TV market.
For its part, the Attorney General’s Office in Ancine issued its opinion regarding the operation. Through a document, it said that cross-ownership in the audiovisual and telecommunications sectors is expressly prohibited in those markets, as indicated in Article 5 of the SeAC law.
The office also said that any company with programming activities in Brazil should have headquarters in the country so it is not possible for an activity to be carried out directly from abroad. This is due to the fact that AT&T claims that its headquarter is outside the country, so it would not be affected by local legislation.