Formula 1/Spain: telecoms operator Telefonica fined €5m for its agreement with DAZN

The Spanish National Markets and Competition Commission (CNMC) has once again fined telecommunications operator Telefonica €5m in connection with the sublicensing on 07/01/2021 of exclusive broadcasting rights for the Formula 1 World Championship to the OTT platform DAZN for 2021-2023 cycle in Spain, announced the body on 31/07/2023.

The CNMC had opened disciplinary proceedings against Telefonica over this sublicensing agreement on 04/05/2023.

"In 2015, Telefonica voluntarily committed to a number of undertakings in order to acquire DTS (pay-TV group) while preserving competition in the market. The terms of the agreement between Telefonica and DAZN to acquire exclusive broadcasting rights to Formula 1 violate certain commitments. In particular, Telefonica excluded Formula 1 content from its channel offering for 2021 and imposed clauses that allowed exclusivity to exist," explained the the CMNC.

"The CNMC has fined Telefonica €5m for a further breach of the commitments made following the purchase of DTS in 2015. The authorisation of Telefonica's purchase of DTS was subject to…