Grupo Televisa, S.A.B. (NYSE: TV)(BMV:TLEVISA CPO) has been declared by the Federal Telecommunications Institute (“IFT”) to be an economic agent with substantial power in the market of restricted television and audio, based on data relevant up to 2014, the company said.
On September 30, 2015, IFT had resolved that there were no elements to determine the existence of substantial power by the company in that market (the “Original Ruling”).
On January 19, 2017, as a result of an injunction filed by a competitor, a Circuit Court ordered IFT to revoke the Original Ruling and issue a new ruling. In summary, the Court determined that in IFT´s original examination, IFT took into consideration elements of information outside the relevant period of time under review, which should have been exclusively the period between January 2009 and August 2014.
As a consequence of the ruling notified to the company, IFT will begin a new proceeding by which it may or may not determine the imposition of certain measures on the company in respect to the relevant market. The company will be heard in this proceeding.
The company considers that the reversal of IFT´s Original Ruling is unconstitutional and does not comply with the guidelines of the Circuit Court and, therefore, it will pursue all options in its defense. Even though the company will vigorously defend its stance, it is not possible to determine the outcome.
Televisa is a leading media company in the Spanish-speaking world, an important cable operator in Mexico and an operator of a leading direct-to-home satellite pay television system in Mexico.