EU competition commissioner warns of dangers of telecom M&A

Nieuws Algemeen Europa 9 MAR 2015
EU competition commissioner warns of dangers of telecom M&A

EU competition commissioner Margrethe Vestager has warned telecom operators against increasing prices following mergers and acquisitions to consolidate local markets. In an interview with the Financial Times, she said that telecoms mergers must not endanger "affordable prices" for consumers and businesses. "I have one interest and that is to make sure that European consumers — that being citizens or businesses — can enjoy relatively innovative markets at affordable prices," she said. 

The previous European Commission cleared consolidation deals in Austria, Ireland and Germany, and the current EC will likely rule on the purchase of Jazztel by Orange in Spain, a merger of Telenor and TeliaSonera's operations in Denmark and Hutchison Whampoa’s move to buy Telefonica’s UK operations. 

Asked whether consolidation had fostered investment in infrastructure, Vestager said: "Actually I have seen a number of examples of the opposite." She added: "So far it seems as if it is still competition that will lead to investment and not the other way round."


Categories:

Algemeen

Companies:

Orange,  Telenor,  Telia,  Jazztel,  European Commission,  Hutchison Whampoa,  Telefonica

Regions:

Europa

Tags:

Regulations, M&A buyouts & divestments

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