With restrictions, Cade approves the sale of Oi Móvel to Vivo, Tim and Claro

Cade (Administrative Council for Economic Defense) approved, with restrictions, the sale of the mobile phone company Oi to rivals Claro, TIM and Telefônica (Vivo).

The trial took place this Wednesday (9) in the first ordinary session of Cade.

There were 3 votes for disapproval of the operation and 3 votes for approval. The president of CADE, Alexandre Cordeiro, used the casting vote to break the tie.

The decision is contrary to the vote of the rapporteur of the case, Luis Braido, who gave an opinion for the disapproval of the sale and was accompanied by counselor Paula Farani and counselor Sergio Ravagnani.

Board member Lenisa Prado was the first to vote in favor of the operation and was accompanied by board member Luiz Hoffmann and the president of CADE. The sale transaction, however, is subject to the adoption of measures to mitigate competition problems before the purchase transaction is concluded.

Such measures are established by the Merger Control Agreement (ACC). Among the remedies provided for by the ACC are the obligation to assign part of the radio frequency spectrum to other operators and make a public offer for the sale of base radio stations.

“With the drugs already imposed by Anatel (National Telecommunications Agency) and with the drugs negotiated by Cade, the operation will allow the entry of new players”, said counselor Lenisa Prado.

In his vote, Prado also recalled that the 5G auction, held in 2021, allowed the entry of five new operators into the mobile telephony market, increasing competition in the sector. For her, the operation maintains the rivalry, since “it should raise the competition of the third player (Tim)”.

“We are facing a less harmful alternative”, added the counselor.