The Competition Tribunal approved the merger of Liberty Comunicaciones de Chile Uno S.A. and Cristal Chile Comunicaciones S.A.
The Tribunal stated that this merger could be positive for the national telecommunications market, because it would reduce investment costs to provide three services at the same time: broadband internet, landline telephony, and cable television. Therefore, an expansion of the availability of these products to an important amount of homes in Chile could be feasible.
The Tribunal considered that the expected competition in these services, essential to the development of a country, would generate benefits that would outweigh the costs of having, for some time, a company with a clear dominant position in the cable TV market. Entry of new firms with diverse technologies is expected in this market.
Nevertheless, given that the merger will generate a very important concentration level in the cable TV service in the short run, the Tribunal established a series of conditions that the companies must comply with.