Talks between the European Commission (EC) and Hutchison about remedies to address anti-competitive concerns with regards to the takeover of Orange Austria are ongoing, while a deadline to offer additional undertakings is coming closer.
The proposed…
Talks between the European Commission (EC) and Hutchison about remedies to address anti-competitive concerns with regards to the takeover of Orange Austria are ongoing, while a deadline to offer additional undertakings is coming closer.
The proposed merger is undergoing an in-depth phase II investigation in Brussels, and a decision is due by 30 November. However, people close to the situation said that if Hutchison wants to offer an improved set of remedies to the regulator it would have to do so before the end of this month.
According to a person familiar with the matter, discussions continue to be held following a formal statement of objections (SO) issued by the EC in September, and a subsequent oral hearing.
At the hearing third parties had been present, including T-Mobile Austria, which is pushing for remedies that would allow a re-shuffling of frequencies held by operators in Austria. T-Mobile argues that a combination of Orange’s and Hutchison’s frequency licences would allow them to roll out 4G quickly because they own adjacent blocks of spectrum.
T-Mobile however owns a more fragmented set of spectrum blocks, making it unsuitable for next generation technology. The operator fears that a merger would therefore give Orange/Hutchison a long-lasting anti-competitive advantage.
UPC, which recently signed an agreement for the launch of an MVNO on Hutchison/Orange’s network, was also at the oral hearing, speaking in favour of the merger, TelecomFinance was told.
Under EC merger control rules companies have to offer remedies by the 65thbusiness day of the 90-day investigation at the latest. In the current investigation the precise date of the last day for remedies has changed several times as the final deadline was pushed back twice from early to now the end of November.
While the person close to the situation said this remedies deadline would expire before the end of the month, another person briefed on the matter said this day would approach on or around 25 October.
The Financial Times reported today that the EC is pushing Hutchison to give up frequencies in addition to undertakings submitted earlier. The report was played down by a person close to the company, suggesting the report painted a bleaker picture than the actual situation.
Hutchison has previously offered remedies that would guarantee MVNOs access to its network under favourable terms. Following the SO and prior to the oral hearing on 10 October, Hutchison had improved its initial set of remedies saying it would also allow MVNOs to offer 4G services.
