TeliaSonera and Telenor will soon discover the European Commission’s objections to their Danish mobile joint venture proposal, which would reduce the number of operators in the country from four to three.
The regulator will send the parties its…
TeliaSonera and Telenor will soon discover the European Commission’s objections to their Danish mobile joint venture proposal, which would reduce the number of operators in the country from four to three.
The regulator will send the parties its statement of objections to the deal this week, according to Reuters citing two people familiar with the matter.
A spokesperson for the Commission, which opened a Phase II review into the deal in early April, declined to comment on the report.
European telcos will keep a keen eye on proceedings, seen as a test case for the new Commission’s treatment of four-to-three mobile consolidation deals.
Margrethe Vestager, the Commissioner for competition policy, said she wanted to make sure “the proposed transaction will not lead to higher prices for Danish consumers and businesses”.
In March, Vestager questioned operators’ assertions that consolidation equalled greater investment in networks. She said she had seen instances in which this was not the case, and argued that it was in fact competition that drove investment.
The review could have implications for four-to-three consolidation in the UK, as Hutchison’s US$15.3bn takeover of O2 is due to be reviewed soon.
