Spain's Supreme Court orders Canal Satelite compensation

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Spain's Supreme Court has convicted the Spanish Government of hindering the commercial development of Sogecable's digital satellite platform, Canal Satelite Digital, by prohibiting the use of its simulcrypt decoder in favour of Via Digital's multicrypt box in 1997. The Court ordered the Administration to pay the DTH company, which is in the process of merging with Via Digital, €26.4 million in compensation.

At the end of January 1997, just after the commercial launch of Canal Satelite Digital, the Government urged Canal Satelite, which used simulcrypt encryption, and Via Digital, which used multicrypt, to rapidly reach an agreement to use a single, compatible, and open set-top box. Since no deal was reached, the Government stated in May 1997 that both DTH platforms would have to use a multicrypt box. It also forced digital DTH operators to register with the Telecommunications Market Commission prior to the start of their operations, which delayed the launch of Canal Satelite Digital.

The Supreme Court ruled that the imposition of the multicrypt box was against the free circulation of goods and services and therefore in breach of European legislation, losing Canal Satelite 26,193 subscribers, quantified at €24.1 million, and causing 180,644 people to postpone subscribing to the platform, for which the Court awarded €2.33 million. However, the damages fall short of the €100 million demanded by Canal Satelite.