As Telecommunications Law Institute (IDET) reported, Economic Competition Federal Commission Plenary (Cofece) analyzed Disney and Fox’s merger and would have approved it in last January 31st session.
‘It has transcended that Cofece’s commision for what it makes to markets they had to analyze (movies, DVDs and marketing), they found no reason to worry about possible damages to competition for what they would have approved the merger’, said IDET officially. Gerardo Soria, Institute’s president, pointed that there are no relevant inconveniences with Commission’s decision, since Disney and Fox focus on relative competition markets, such as toys and films.
Problem is focused on content distribution through restricted TV or pay TV platforms over the Internet or OTT, where Telecommunications Federal Institute must intervene. It is expected to study these market segments , because ‘it is known that particularly, there are well-founded concerns about possible damage or risk to sports channels competition, where the resulting company would represent a high concentration’, they pointed from IDET.
According to it, merger’s result would end up imposing conditions on pay TV systems against subscribers, who currently have access to sports channels content that cause ‘great interest’, such as local league matches and other international championships.