(Reuters) – Spain’s antitrust watchdog on Friday imposed a 6-million-euro ($6.35 million) advantageous on Telefonica (NYSE:) for industrial practices, reminiscent of permanence clauses on sensible telephone leases, that violated the phrases of a 2015 takeover accord for cable TV operator DTS.

CNMC, because the regulator is thought, mentioned Telefonica’s industrial presents, which included the lease of sensible telephones, with so-called permanence clauses stopping purchasers from switching suppliers, breached the commitments it made to get the merger permitted.

Telefonica had agreed to chorus from hindering pay-TV clients switching to different suppliers for at the least 5 years to make sure free competitors, CNMC mentioned. The interval was prolonged for an additional three years in 2020, it added.

CNMC mentioned purchasers who contracted the Movistar Fusion package deal from April 11, 2021 and took on a smartphone lease, had been topic to permanence circumstances and a penalty for early discharge over a three-year interval. With these contracts, Telefonica restricted purchasers’ skill to contract comparable companies with different competing operators.

The advantageous could be appealed earlier than the nationwide excessive court docket inside two months. The regulator has mentioned it opened proceedings in December 2022.

A spokesperson for Telefonica mentioned the corporate will attraction because it doesn’t contemplate that it has breached commitments on permanence circumstances on pay-TV companies.

Telefonica is the biggest cable-TV operator in Spain when it comes to variety of clients. It acquired management of DTS from Spanish media firm Prisa for 724.6 million euros ($769.6 million).

($1 = 0.9446 euros)