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CADE's court requests more information on Disney and Fox merger

Merger

The autarchy is reviewing the case
published: Feb 11, 2019 05:15 PM last modified: Feb 11, 2019 05:19 PM

The Plenary of the Administrative Council of Economic Defense (CADE), in its acronym in Portuguese) approved a proposition from commissioner Paulo Burnier to send official letters in order to gather more information regarding the acquisition of Twenty-First Century Fox by The Walt Disney Company.

The merger was notified to Cade on July 20, 2018. Among other markets, the companies operate in the distribution of motion pictures to movie theaters, as well as in the distribution and licensing of TV contents, licensing of merchandising and programs on cable TV.

In December of the last year, CADE's General Superintendence (SG/CADE) decided to send the case to the Court analysis. After reviewing the data collected throughout the initial phase of the process, SG/Cade verified that the companies' business merger raises competition concerns on the cable sports channels market - which include ESPN and Fox Sports.

According to the Superintendence, currently, there is only one large audience competitor capable of competing with those channels and there is no probability of a future scenario for the next years with newcomers on this market. Furthermore, ESPN and Fox Sports are currently the closest competitors that broadcast international sports content.


The case is still under review by CADE´s Administrative Tribunal. The legal deadline is 240 days, which can be extended for more 90 days. Until now, there is no final decision from the authority.