Brasília – May 15, 2025 — Brazil’s competition authority CADE has recommended blocking parts of a proposed expansion of a network-sharing agreement between mobile operators TIM and Telefônica, citing competition concerns.
In a decision published Thursday, CADE’s investigative arm (SG/CADE) referred the case to its Administrative Tribunal, recommending conditional approval of the contract amendments. The changes, known as “aditivos,” aim to expand a previously approved agreement from 2020 to cover additional municipalities.
While SG/CADE acknowledged potential efficiency gains from expanding 4G coverage and optimizing legacy 2G infrastructure, it raised red flags over the inclusion of a list of “potential municipalities” with no clear timeline or implementation commitment. According to the agency, such provisions could allow the agreement to grow unchecked, reducing competition and increasing the risk of coordinated behavior between the companies.
Despite these concerns, SG/CADE found that in 224 municipalities — 66 under the 2G “Apagado” contract and 158 under the 4G “Single Grid” contract — the companies provided technical justifications and expressed a clear intent to proceed. The agency recommended approving the agreement only for those specific areas.
The final decision now rests with CADE’s Tribunal.
