The Dutch antitrust regulator NMa will investigate the proposed takeover of Caiway by KPN in an in-depth phase II investigation, it was announced today. During the initial review the regulator has identified areas of concern, an NMa spokesperson…
The Dutch antitrust regulator NMa will investigate the proposed takeover of Caiway by KPN in an in-depth phase II investigation, it was announced today. During the initial review the regulator has identified areas of concern, an NMa spokesperson explained.
The NMa will have 13 weeks to look into the transaction in more detail once KPN has applied for the second stage review. A KPN spokesman confirmed that the company would submit such an application, which he described as a “formality” to get the second stage review going.
The NMa’s main concerns arise in the Western regions of the Netherlands, where Caiway’s and KPN’s operations overlap. If the transaction goes through as planned, copper and cable networks in the area will be owned by the same company, threatening to decrease competition in TV, internet and fixed telephony services supply, the NMa spokesperson said.
The regulator worries that the competitive pressure currently exercised by other players such as Tele2 and T-Mobile owned Online would be weakened to the disadvantage of consumers. The NMa also pointed out that the competitors rely on access to the copper and fibre networks owned by Caiway and KPN.
The KPN spokesperson said it was too early to discuss if remedies were necessary to address anti-competitive concerns.
The proposed takeover of Caiway by KPN for an undisclosed amount was announced in early May.
