The European Commission is opening an investigation into the takeover of telecom operators VOO and Brutélé by its peer Orange Belgium. This is reported by European Commissioner for Competition Margrethe Vestager. The Commission is concerned that the acquisition will reduce competition in the telecom market in certain parts of Belgium.
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Yorick Dupon
28-07-22, 17:12
Latest update:
28-07-22, 17:33
Bron:
European Commission, Belgium
Just before Christmas last year, Orange announced that it wanted to buy 75 percent minus one share of the Walloon telecom company. Before that, it had signed an agreement with the Liège intermunicipal company Netys.
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The European Commission now wants to investigate in depth whether this will not lead to higher prices or poorer quality for customers in Wallonia and parts of Brussels. Vestager will let you know in a press release.
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The Commission concludes from a preliminary investigation that the acquisition could create problems in places where Orange, VOO and Brutélé currently compete. It fears that the number of operators in those places will fall from three to two, resulting in less innovation.
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According to a source, the Commission is opening an investigation because Orange has not taken the steps it has requested to address concerns about fair competition, Reuters news agency said on Wednesday.
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Orange doesn’t seem concerned about the investigation. The telecom group can now demonstrate that the acquisition is “beneficial for the sector and can just strengthen competition on Belgian territory”.
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With the acquisition of VOO, Orange would gain control of the Walloon cable network and part of the network in Brussels. Orange wants to modernize cables and roll out fiber optic via VOO.
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The Commission has until December 6, 2022 to decide whether or not the acquisition will distort competition. As long as the investigation is ongoing, the acquisition cannot be completed and the companies will continue to operate separately. The transaction values VOO at EUR 1.8 billion (for 100 percent of the capital).
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