Brazil antitrust watchdog Cade ruled on Wednesday that Spain’s Telefonica SA must exit its direct and indirect stake in wireless carrier TIM Participações SA or seek a new partner for its Vivo mobile phone unit. In a meeting that took place at the regulator’s headquarters in Brasilia, directors at Cade also ruled that a new partner for Vivo, Brazil’s largest mobile phone carrier and part of Telefonica Brasil SA, will not be allowed to own a stake in another rival in Brazil. Wednesday’s ruling, which is definitive, gave a strong indication that the approval of Telefonica’s stake increase in Telecom Italia SpA – TIM Brasil’s parent company – faces serious challenges in Brazil.
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