Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC opens investigation of Danish telecom merger, (Apr 9, 2015)
Organizations Mentioned:Telenor ASA | Telia Co. AB | TeliaSonera AB
By Greg Hammond, J.D.
The European Commission has opened an investigation into the proposed merger between Danish telecommunications operators TeliaSonera AB and Telenor ASA. Both companies provide fixed and mobile telecommunications services, along with broadband and television services in various European countries.
TeliaSonera and Telenor are the second and third largest operators in the mobile retail market in Denmark, and the proposed merger would reduce the number of mobile network operators in Denmark from four to three, creating the largest player with regard to revenue and number of subscribers
The EC is concerned that the deal could reduce mobile retail competitors’ incentives to compete, causing prices to increase, loss of innovative offers, and lower quality on the Danish retail mobile telecommunications market. In addition, the EC notes that the reduction of mobile network operators that offer wholesale services could reduce the choice of alternative host networks, weakening the negotiating position of wholesale customers. Lastly, the EC suggests that the deal could result in a highly concentrated market structure that could lead to coordination between the remaining operators.
“Telecoms constitute an important service in many people’s daily life,” stated Commissioner in charge of competition policy, Margrethe Vestager. “My aim is to make sure that the proposed transaction will not lead to higher prices to Danish consumers and businesses.”
Companies: TeliaSonera AB; Telenor ASA
News: AcquisitionsMergers Antitrust