Old Man and the Sky: The Brazilian Antitrust Implications for Rupert Murdoch's Expansion of the Sky Global Satellite Network

To expand its global satellite network to the United States, Rupert Murdoch's News Corporation purchased DirecTV in 2003. Brazil's antitrust regulatory body, CADE, has expressed concern about a potential monopoly in the Brazilian satellite market controlled by Murdoch because News' Sky Latin America competes directly with DirecTV. If News opts to combine the two Brazilian satellite services, it will consolidate control of ninety-five percent of Brazil's satellite market, leaving satellite and cable competitors at a disadvantage. The Author argues that CADE should conditionally approve the acquisition because of the combination's ability to benefit Brazilian consumers, the government, and News Corporation itself through lower costs, lower subscription prices, and higher subscription numbers.

At the same time, because of the negative market effects that may potentially arise from News Corporation's monopoly, CADE should place certain behavioral conditions on its approval of the combination.