Brazil bans OTT D2C Fox+

Brazilian National Telecommunications Agency (Anatel) issued a precautionary measure in which it request Fox to restrict Fox+, its direct to final consumer OTT. The Brazilian regulator gave Foz a 30-day period to obey the measure and, in case of not responding to it, the channel will be forced to pay a daily USD 25,800 fine, whose amount can increase up to USD 5 million.

Fox + is an OTT offer aimed at the final consumer, which includes all Fox’s linear channels. This product is only available in Brazil and Mexico, and is distributed through agreements with pay TV operators or through the internet. Both in Brazil and Mexico and in the rest of Latin America, it is possible to access the same content through Fox Play, the TV Everywhere offer, with a pay TV subscription.

The Agency’s measure against Fox took place after the complaint filed by Claro Brazil, where it alleged that the company offered its contents on the internet through the ‘TV ao Vivo’ application. According to Anatel, the product would violate the Brazilian Audiovisual Content Law. In that country, vertical integration in pay TV is banned, that is, a content generator can not participate in the distribution process.