Sports streaming service DAZN and telecommunications provider TIM are set to pay a fine exceeding €8 million imposed by The Italian Competition Authority (AGCM). The hefty charge results from the companies' handling of broadcasting rights for Serie A football matches.
The AGCM levied the bulk of the penalty on DAZN, imposing a fine totalling €7,240,250.84. However, TIM hasn't escaped unscathed; they're due to shell out an additional €760,776.82.
This decision arises out of an investigation into TIM's exclusive contract with Serie A during the 2021-2022 season. This agreement not only favoured TIM but also prohibited cooperation with rival firms in the telecommunications sector.
The industry regulator argued that such an arrangement could negatively impact competitive dynamics within both connectivity services markets and retail sales for pay-TV facilities in Italy's TLC sector.
Furthermore, it was flagged how TIM had promoted a package deal its competitors couldn't imitate - incorporating both TimVision and DAZN content along with their connectivity service offering.
In AGCM's assessment, this offer could potentially rob other telecomms providers of opportunities to bundle their own connectivity services alongside sought-after content like Serie A match viewing rights for 2021 through 2024 seasons - thus reducing competition against themselves (TIM).
Further regulatory scrutiny revealed elements within this initial agreement which seemed likely to restrict DAZN’s capacity for exploring commercial possibilities tied to enhancing audiovisual offerings via differing tech platforms moving forward.
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