State-Initiated Restraints of Competition
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State-Initiated Restraints of Competition

Edited by Josef Drexl and Vicente Bagnoli

States influence competition in the market in various ways. They often act themselves as market participants through state-owned enterprises. They regulate markets and specific sectors of the economy such as public utilities in particular. In some instances, market regulation explicitly aims to promote competition in the market. In other instances, regulatory schemes and decisions may inadvertently distort competition or openly promote conflicting objectives and even anti-competitive goals. Furthermore, states can distort competition among firms when they act as purchasers of goods and services as well as when they grant subsidies to individual firms. This book assembles contributions by competition law scholars who present new insights on the diversity of problems and challenges arising from state-initiated restraints of competition in jurisdictions from all around the world, not only including the EU and the US, but also Latin American countries, China, India and Australia.
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Chapter 10: Competition and imposition of investment targets in the Brazilian pay-TV market

Arthur Barrionuevo and Pedro Dutra


This chapter deals with the legal and economic aspects of the proposal contained in the Questionnaire about the Imposition of Commitments on Conditional Access Service (SeAC) Providers, annexed to Public Consultation No. 65 of 19 December 2011 (Appendix II), drafted by ANATEL, the Brazilian National Communication Agency. The commitments are intended to boost competition and growth in the market for pay-TV services by means of the imposition of coverage targets (number of households) that the operators of these services in the cable-TV sector will be obliged to fulfil, so as to receive a licence to operate in each municipality. On 19 December 2011, ANATEL published Public Consultation No. 65, which defines its objective as preparing ‘Regulations for Conditional Access Services (SeAC) and the rules that will govern the provision of cable TV services (TVC), multichannel multipoint distribution services (MMDS), direct-to-home television and audio distribution service (DTH) as well as Special Pay TV Services (TVA)’. However, according to its Point 2.5, the Consultation is based on the following considerations: The opportunity to obtain feedback from society with regard to the feasibility of imposing commitments on the companies that have been granted a licence to operate SeAC to stimulate investment in land-based telecommunication networks, which contribute to the growth of broadband access in Brazil, as presented in the case files under examination.

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