Press Release 25/2021

December 15, 2021

AdC issues Statement of Objections to MEO, NOS, Vodafone and Accenture for anticompetitive agreement in pay-TV services

The AdC has issued a Statement of Objections to MEO, NOS, Vodafone and Accenture for restricting competition by agreeing among themselves to insert 30 seconds of advertising as a condition for their customers to have access to automatic recordings of the different TV channels.

The investigation

The investigation was originated from information disclosed in August 2020 by the media, which also stated that this initiative between the three largest pay-TV operators in the Portuguese market had the technological and operational support of the consulting firm.

In August 2020 as well, the AdC ordered the opening of an investigation, and in November of the same year, carried out unannounced inspections in order to obtain evidence of the anticompetitive practices.

The AdC's investigation concluded that the agreement led to a concerted approach by MEO, NOS and Vodafone together with Accenture, towards the customers of the first three companies, who were left with no incentive to change operator, despite being dissatisfied with the changes introduced,  due to the simultaneous and concerted degradation of the pay-TV service. The agreement thus aimed to preserve the relatively stable and balanced market structure from which the operators benefit, since it minimizes differentiation in the offer of pay-TV services, including in terms of price or other service terms, to the benefit of operators and to the detriment of consumers.

In relation to the advertising space, it was found that the agreement resulted also in the elimination of competition among operators, with the standardization of the conditions offered to advertisers and advertising agencies, including price, discounts and other conditions relevant to those firms.

Priority to combating anticompetitive agreements

Competition Law expressly prohibits agreements between companies that significantly restrict competition in all or part of the national market, reducing the welfare of consumers and/or businesses.

Combating anticompetitive agreements between companies continues to be a priority for the AdC, given the damage they invariably cause to consumers and companies, forcing them to pay higher prices and reducing the quality and diversity of the goods and services.

The violation of competition rules not only reduces the welfare of consumers, but also harms the competitiveness of companies, penalizing the economy as a whole.

The AdC stresses that issuing a Statement of Objections does not determine the final outcome of the investigation. At this stage, the companies concerned are given the opportunity to exercise their right to be heard and to defend themselves in relation to the infringement they are accused of and the sanction or sanctions they may incur.