Conexis, the group that represents the main telecommunications operators in Brazil, applied to the Supreme Federal Court (STF) to join an action against the increase in the mandatory loading of channels for pay TV companies. The regulation to which it opposes requires content from local stations to be included in service packages, free of charge.
For its part, the entity pointed out that the measure was a “flagrant violation of the principle of free enterprise” and declared: “What was, by legal denomination, a regulatory remedy, a compensatory formula aimed at the distribution of satellite TV, became in a surreptitious way of improperly and disproportionately expanding the mandatory charge in cable TV distribution”.
In addition, Conexis also argued that the obligation of the operators to provide their service complies with the purpose of guaranteeing the free distribution of local content, so because of that, there would be no reason to consider a breach of the law.
Finally, it warned about “severe interference in the management of pay TV distributors“, due to “a remarkable change in the management of the asset of limited capacity that is the cable spectrum“, since “companies seem forced to use a part of this infrastructure to upload locally generated content to other places“.