The antitrust regulator CADE approved Disney’s purchase of FOX and withdrew the sale of FOX Sports as a condition.
The Administrative Council for Economic Defense (CADE) of Brazil announced the approval of Disney’s acquisition of FOX in Brazil.
And surprisingly, the antitrust regulator withdrew the previously imposed condition that it had to sell FOX Sports in the country.
Thus, Disney will be able to keep FOX Sports networks in Brazil, although with some limitations.
The first is that Disney must maintain the broadcast of all the sports competitions that FOX Sports currently broadcasts for the next three years or until the end of the current contracts.
In addition, Disney must maintain the FOX Sports network until January 1, 2022 with “the same level of quality” as it has today, including broadcasts of the Copa Libertadores de América matches.
After that date, they can transfer the broadcasts to some of their networks.
Finally, in case they choose to close the channel, they must return the FOX Sports brand and leave it free to be used by any other interested group, by prior agreement.
As explained by CADE, these conditions compensate the competition problems previously found and provide a solution after the difficulties evidenced in the sale of FOX Sports.
Disney initially had time until November 2019 to sell FOX Sports in Brazil, but has not found a buyer.
A similar situation exists in Mexico, given that the regulator imposed the same condition. Disney has so far failed to close a deal. Although the term ended on May 1, due to the coronavirus crisis, the IFT extended it until August.