The Commission has sent a statement of objections to Telefónica SA and Portugal Telecom regarding an alleged market sharing agreement. It is alleged that the agreement was made in the context of Telefónica’s 2010 acquisition of Brazilian mobile operator, Vivo, which was previously jointly owed by both parties. It was to run from September 2010 to the end of 2011. In January 2011, the Commission launched its investigation into the terms of the non-compete agreement, which was promptly repealed by the parties.

The Commission’s preliminary view is that agreement hinders competition in breach of EU law. The companies have two months to reply to the statement. The Vivo deal itself is unaffected by the investigation.