The Belgian Competition Council has rejected Belgacom's proposed acquisition of retail chain The Phone House. Belgacom made a bid for the retailer in April, proposing EUR 22 million for 114 stores. The competition watchdog said in August that it would begin a new investigation into the buy, amid fears the deal could lead to competition disruptions on the market. That investigation is now complete, with the Council marking three main points of concern. Firstly, it is very likely that Belgacom would keep The Phone House as an independent brand in order to attract as many visitors as possible and sign them up to Belgacom services. Secondly, the deal would increase entry barriers for potential competitor Voo on the mobile telephony market. It is very likely that, after the acquisition, The Phone House will not continue to provide its distribution services to Voo, or at least, under far less favourable conditions. Lastly, the acquisition will reduce competition in a number of catchment areas. The Competition Council is expected to make its final decision in early November.
