The Brazilian antitrust (Cade) resolved that Telefonica must exit its direct and indirect stakes in Tim Participações (Tim Brasil) or sell Living (the first Brazilian mobile operator controlled by Telefonica Brasil). This was announced by the Director General of the Authority, specifying that the eventual purchaser of Vivo will not be allowed to have stakes in other competing Brazilian operators.
The Authority explained that Telefonica's decision to grow in the capital of Telecom Italy, which controls Tim Brasil, has opened up serious problems in Brazil: the Spanish company has violated the commitment, made in 2010 at the time of the purchase of the stake in Telecom Italia, not to enter into the merits of Tim Brasil's management choices and not to increase its share in the parent company.
For this reason Telefonica was fined 15 million reais, approximately 5 million euros. Together Tim Brasil and Vivo control over half of the mobile telephony market in the South American country.
The Spanish group said it is evaluating the decision of the Antitrust and will issue a press release when it deems it appropriate. In the meantime, however, the Brazilian news caused Telecom Italia's stock to slip on the Stock Exchange, which at the start lost almost two percentage points.
