While incumbent operators argue that the in-country mergers are needed in order to increase investment, the EU commissioner said she had "not seen evidence that this is the case". She said there was more evidence that "excessive consolidation may lead not only to less competition and more expensive bills for consumers, but that it also reduces the incentives in national markets to innovate".
She used Free Mobile, the newest and fourth mobile operator in France that sparked a price war, as an example of how increased competition lead to a higher level of investment in the French mobile market. Vestager also noted the incumbents' history of abusing their dominant position and restricting access to alternative operators that form an important source of new investment.
Vesatger's speech suggests the EC will take a critical view of a number of pending mergers in Europe, such as Hutchison Whampoa's bid for O2 UK and merger of its Italian unit with Wind. Both deals would reduce these countries to three mobile operators from four. Vestager made similar comments in March, saying she did not want consolidation to result in higher prices for consumers. Since then the EU's competition authorities have forced concessions in several deals, such as Orange's takeover of Jazztel in Spain and Altice's acquisition of PT Portugal.
