Two decades after the landmark merger between VTR and Metrópolis Intercom, Chile’s National Economic Prosecutor’s Office (FNE) has recommended that the Competition Tribunal (TDLC) remove the conditions imposed in 2004 to safeguard competition in the telecommunications market.
The recommendation follows a review that, according to the FNE, shows that the risks which justified those measures are no longer relevant. “The competitive and regulatory conditions of these markets have changed substantially,” argued Pía Rojo, attorney for the FNE’s Compliance Oversight Division, during today’s hearing.
Resolution No. 1/2004 had restricted VTR’s ownership and participation in certain market segments and imposed limitations on both the commercialization of its products and services and its contracting practices.
Yesterday, the FNE contends the market looks very different. Among the factors supporting the removal of the measures are a sharp decline in ClaroVTR’s market share, lower barriers to entry for fixed‑line services, the growth of a wholesale market of neutral fiber‑optic operators, and the rise of streaming services, which have broadened consumer choice and intensified competition.
The agency also noted that ClaroVTR — created from the merger of Liberty Latin America and América Móvil — is already subject to conditions approved by the FNE during the review of that transaction.
The final decision now rests with the TDLC, which will determine whether the current competitive landscape justifies lifting the restrictions that once shaped one of Chile’s most significant telecom mergers.
