The European Commission has approved unconditionally the proposed acquisition of UPC Austria by T-Mobile Austria, as announced in December 2017. The Commission concluded that the transaction would raise no competition concerns as the companies' activities and assets are largely complementary; UPC's main activities are related to fixed telecommunications, while T-Mobile is mainly active in mobile.
The Commission examined the impact of the proposed transaction in the limited number of markets in the fixed and mobile telecommunications sector in Austria where the activities of the operators overlap. In particular, both companies are active in the provision of internet access services for residential customers, since in Austria internet access at home is often provided through a router connected to a mobile network.
However, the Commission found that the impact of the transaction on this market is likely to be limited, considering in particular that UPC's fixed internet access products differ considerably from T-Mobile's mobile broadband products. These products differ both in terms of the underlying technology and product characteristics and as a result are not closely competing.
The Commission also found that the merged entity would continue to face significant competition from other players such as the incumbent A1 Telekom Austria and Hutchison Drei Austria. In 2017, the market saw another acquisition - Hutchison Drei Austria acquired Tele2 and they announced their first joint offers this summer.
Additionally, the Commission examined a number of vertical and conglomerate relationships in the fixed and mobile telecommunications markets in Austria arising as a result of the transaction, in particular concerning bundled multiple play services. The Commission concluded that the merged entity would not be able to use its market power to shut out or marginalise its fixed or mobile competitors by bundling fixed and mobile products.
The transaction was notified to the Commission on 18 May. Following concessions submitted by T-Mobile, the Commission extended the deadline for the competition review of the proposed merger from 25 June to 9 July.
