The government of Brazil has imposed a fine of 45.75 million reais (about 6.93 million euros at the current exchange rate) on the subsidiary of Telefónica in the country for giving away tickets to public employees to attend matches of the World Cup Soccer which was held in 2014 in Brazil.

In an event relevant to the market, the operator informs that the General Controller of the Union (CGU) has imposed an administrative penalty for delivering tickets for the World Cup to public workers within the framework of the actions of marketing and promotion institution that the company carried out in 2014.

The CGU considers that these gifts are incompatible with Brazilian law, but during its analysis it has verified the absence of damage to the public administration and has not identified benefits obtained or intended by the company for the tickets given away.

Considering these elements, as well as the degree of cooperation of the company and the high level of maturity of the compliance program of Telefónica Brasil, among others, the CGU has decided to impose on the company the minimum sanction foreseen, 0.1% of the gross income of the company in the year prior to the start of the administrative procedure.

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Telefónica highlights that it develops and implements initiatives to ensure “continuous improvement” of its compliance program, through a governance and organizational structure that guarantees behavior based “on ethics, transparency and respect for applicable laws and standards.”