The merger between Disney and Fox at a global level, which operated in 2019, cannot take place in Argentina in the same way as in other markets due to serious media concentration problems.
This was determined by the Secretary for the Defense of Competition of that country, so Disney-Fox will have to get rid of several of its signals.
According to the official calculation, the union of both networks (ESPN and FOX) under the same umbrella controls 64 percent of the sports signals that operate in Argentina.
At the same time that it confirmed the condition of divestment with the sale of some sports signals, Consumer Defense announced to the company that it must allow the free transmission of soccer games of the most important clubs in the country, River Plate and Boca Juniors, and the European Champions League, among other events.
This, until the sale of the necessary channels is completed until they stop dominating the market illegally.
Fox was bought by Disney globally three years ago, leaving the new company with well over half of the market share of sports signals in the Argentine market.
According to the Defense of Competition, since the purchase competition has been reduced, restricted and distorted in the marketing market for basic sports signals, which harms the general economic interest.
In the statement, it is stated that Disney-Fox has one-year term to divest, with an extension of 6 months, publishes Telam.
According to the text, between ESPN and FOX may not have more than four basic linear sports signals in Argentina.
Meanwhile, Disney-Fox must broadcast openly and at “zero cost” those classified as “essential content”, such as the Copa Libertadores de América, UEFA, NFL, MLB and Formula 1.
If Disney-Fox does not comply with the divestment after 18 months (term year plus extension), “These open and free transmissions will be extended for 5 more years”, warns the Argentine competition control agency.
In parallel, the company was informed of the obligation to maintain stable the relationship existing prior to the merger between the price of sports signals and the value of the basic subscription.