The Finance Ministry?s Department of Economic Surveillance (Portuguese-language acronym SEAE) plans to respond before the end of the year to a complaint from Neo TV about SporTV?s exclusivity agreements. The SEAE performs regulatory duties under Brazil?s anti-trust legislation. SporTV is a sports channel owned by Globosat. Mário Gordilho, SEAE secretary for the media industry, says most of the requisite information has been supplied and an opinion is being drafted. The SEAE will deliver its legal opinion to CADE, the competition tribunal subordinated to the Justice Ministry. CADE will issue a ruling on Neo TV?s complaint. The SEAE recently issued an opinion on Globosat?s acquisition of a 25% stake in ESPN Brazil and the ESPN-Fox-Globosat joint venture. Knowledge of the market from this case and others like it will be highly useful in the proceedings involving SporTV, Mr Gordilho says.
ESPN case
It?s worth recalling an aspect of SEAE?s opinion on Globosat?s acquisition of a significant holding in ESPN Brazil. The department recommended that if CADE approved the transaction it should specify that the channel may not be exclusive for at last five years. It also recommended the immediate end of exclusivity for sporting rights owned by Globosat and ESPN Brazil. Lastly, the SEAE advised the Justice Ministry?s Department of Economic Law (SDE) to open proceedings against Globosat and Net Brasil with a view to investigating their programming exclusivity practices on the grounds of alleged unfair trading. The SDE hasn?t yet responded to the SEAE?s opinion in the case of ESPN Brazil, nor has it opened proceedings against Globosat. It therefore seems unlikely that CADE will rule this year on Globosat?s acquisition of a 25% holding in ESPN Brazil.
