Brazil's carrier Algar Telecom asks Brazilian antitrust watchdog to suspend Oi's mobile assets auction

Algar understands that the entire Oi Móvel auction must be canceled, under the risk of creating a scenario of concentration eliminating rivals

Photo: Screenshot/Website Algar
  • According to Algar, the practice orchestrated by competitors created a unified center of economic decisions;
  • The operator also argues that a “consortium” carried out between Telefónica-Vivo, Tim and Claro operators should, before participating in the auction, have submitted the operation proposal to the Brazil’s antitrust watchdog.

Brazilian telecommunications company Algar Telecom presented a requirement to Brazilian antitrust watchdog to suspend Oi‘s mobile assets auction, first reported Teletime.

According to Algar, the practice orchestrated by competitors created a unified center of economic decisions that acted to obtain a privileged position as a stalking horse buyer in the judicial process that organizes the sale of the assets of the telecom carrier Oi, reported Teletime.

READ ALSO: Digital Colony’s Highline withdraws from Oi’s mobile assets auction

The operator also argues that a “consortium” carried out between Telefónica-Vivo, Tim and Claro operators should, before participating in the auction, have submitted the operation proposal to the Brazil’s antitrust watchdog, which was not done.

READ ALSO: Brazilian telecom carrier Oi’s mobile operation will be sold in shares to Tim, Telefônica and Claro

For this reason, Algar understands that the entire Oi Móvel auction must be canceled, under the risk of creating a scenario of concentration since it started to generate immediate effects in the market, eliminated the existing new entrant and eroded the possibility of creating other competitors due to the retraction of possible financing.

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