Spain's antitrust watchdog opens probe into Telefonica over Formula 1 TV rights

MADRID (Reuters) -Spain's antitrust watchdog said on Thursday it had started disciplinary proceedings against Telefonica over an agreement with streaming and cable TV channel DAZN to air Formula 1 races in 2021, 2022 and 2023.

CNMC, as the watchdog is known, will investigate whether the agreement between the Spanish telecoms company and DAZN violates the commitments made by Telefonica in 2015 to preserve competition after it bought cable TV operator DTS.

Back then, Telefonica agreed to make its content available to other pay-TV operators "under fair, reasonable, objective, transparent and non-discriminatory conditions" and "not acquire or exploit exclusive broadcasting rights in Spain of TV channels produced by third parties", CNMC said in a statement.

A Telefonica spokesperson said the company will respond to CNMC's requests, but declined to comment further.

CNMC said it now had up to three months to investigate and decide on the case.

Spain's antitrust watchdog started in December disciplinary proceedings against Telefonica for other possible violations of the commitments made when it bought DTS in 2015.

(Reporting by Matteo Allievi; Editing by Inti Landauro, Mark Potter and Jan Harvey)