The technical area of Brazil’s Administrative Council for Economic Defense (CADE, by its initials in Portuguese) has recommended rejecting the transaction by which the US telecommunications company AT&T intends to acquire Time Warner. Anyhow, the final decision of the agency will be made public after being reviewed by a counselor and by the court. The National Telecommunications Agency (Anatel, by its initials in Portuguese) must also assess whether the purchase complies with Brazilian laws.
According to the General Superintendence of CADE, the operation is not viable because it would lead to a market concentration. Another consequence may be the discrimination in the sales of channels. In Brazil, AT&T is the major shareholder of the DTH operator Sky. Turner owns a very important network of TV channels in that country.
For AT&T, this transaction would imply an investment of more than 85 billion dollars. It was announced in October 2016 and has already been authorized by the antitrust authorities of 16 countries, although three authorizations are still needed: Chile, United States and Brazil.