Claro acquisition of Desktop approved by Brazil's Cade

Brazil’s Administrative Council for Economic Defense (Cade) has approved Claro’s acquisition of Desktop without restrictions. The decision follows previous concerns regarding market concentration in the fixed broadband sector.

While the merger involves significant overlap in 198 municipalities, Cade determined that the probability of unilateral market power is low. The antitrust body noted that existing network infrastructure and the presence of local and national competitors are sufficient to mitigate competitive risks. Additionally, the analysis suggested that Claro would have economic incentives to gradually vacate redundant infrastructure.

Desktop currently serves 1.2 million customers across 198 cities in the state of São Paulo, holding a 7.6% market share. For Claro, the acquisition strengthens its position in São Paulo, where it competes for leadership against Vivo. Currently, Vivo holds a 31% market share with 4.9 million customers, while Claro holds 28.3% with 4.5 million customers. The transaction had previously received preliminary approval from the National Telecommunications Agency (Anatel).