Press Release: Antitrust: Commission probes co-operation between Telefónica and Portugal Telecom on Iberian markets

The European Commission has opened a formal investigation to ascertain whether the Spanish and Portuguese telecoms incumbents Telefónica S.A. and Portugal Telecom SGPS S.A. have breached EU rules by agreeing not to compete with each other in their respective home markets. The agreement being investigated under Article 101 of the EU Treaty, which bans restrictive business practices, was concluded in 2010 when Telefónica acquired sole control over their previously-held Brazilian joint venture Vivo. The Commission will also investigate whether the non-compete agreement pre-dates the Vivo deal, which is not concerned by this probe. Opening antitrust proceedings means that the Commission will treat the case as a priority. It does not prejudge the outcome of the investigation.