The Competition Tribunal ruled in favor of the National Economic Prosecutor’s Office in a lawsuit against Mr. John C. Malone, for not complying with the First Condition of Resolution # 1 of this Tribunal, which had authorized the merger of VTR and Metrópolis Intercom with conditions. It was established that Mr. Malone is the controller of VTR; that in that position he learned of the cited First Condition, and that he indirectly acquired participation in the ownership of DirecTV Chile, a paid satellite television services provider, and a competitor of VTR, which was precisely what the First Condition aimed to avoid.
The Tribunal dismissed the pleas of prescription of the action, prescription of the First Condition, foreign plea, and of lack of active and passive legal standing, as well as the rest of Mr. Malone’s defenses, given that no apparent change in market conditions since those analyzed in Resolution # 1 was proven.
Mr. Malone was ordered to pay a fine of 4,000 Annual Tributary Units or UTA (approximately US$ 3.6 million), as well as to cease in any direct or indirect ownership of DirecTV Chile Ltda., within 6 months.