Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC denies Spain’s request to review proposed telecom merger, (Jan 26, 2015)

By Greg Hammond, J.D.

The Spanish competition authority has been denied its request to assess the planned acquisition of Jazztel p.l.c. by Orange S.A. under Spanish competition law. The EC rejected Spain’s referral request, finding that it was better suited to deal with a proposed acquisition between two telecommunications companies.

Jazztel is a telecommunications services provider in over 30 countries. Similarly, Jazztel provides telecommunications services on the retail and wholesale levels in Spain. Orange notified the EC of its plan to acquire Jazztel on October 16, 2014. On November 5, 2014, the Spanish competition authority filed its referral request with the EC.

Article 9(2)(a) of the EU Merger Regulation allows member states to request that the EC refer all or part of the assessment of a case to it, so long as the competitive effects are wholly national or local. The EC then determines which competition authority is better placed to deal with the case.

In the instant matter, the EC concluded that—provided its extensive experience in assessing cases in the telecommunications sector—it is better placed to assess the transaction in order to ensure consistency in the application of merger control rules in the fixed and mobile telecommunications sectors across the European Economic Area (EEA). The EC noted, however, that it will “continue to cooperate closely with the Spanish competition authority in the assessment of the case.” The Commission has until April 30, 2015 to make a final decision on whether the proposed transaction would significantly impede effective competition in the EEA.

Companies: Jazztel p.l.c.; Orange S.A.

News: AcquisitionsMergers Antitrust