Menu
Hutchison's acquisition of Telefónica Ireland under scrutiny by competition watchdog

Hutchison's acquisition of Telefónica Ireland under scrutiny by competition watchdog

The EU Commission is concerned the merger would reduce competition

Europe's competition watchdog on Wednesday opened an investigation into the proposed merger between Telefónica Ireland and Hutchison 3G UK.

The European Commission is concerned that because both companies provide mobile phone services in Ireland, the deal may "reduce competition in the markets for retail mobile telephony and for wholesale access and call origination in Ireland."

The transaction would combine two of the four mobile networks in Ireland and create a player of similar size to the current largest operator, Vodafone, thus significantly reducing choice for consumers, the Commission noted. The fourth operator is Eircom.

An initial examination of the proposed merger raised concerns that "the transaction would reduce the merged entity's incentive to continue a network sharing agreement with Eircom, which could hamper Eircom's ability to compete effectively after the merger."

If given the go-ahead, the merger would reduce the number of mobile network operators to three, making it more difficult for mobile virtual network operators to obtain favourable wholesale access terms.

The Commission will now investigate the proposed acquisition in-depth to determine whether these initial concerns are confirmed or not and will make its decision by March 24, 2014.

Follow Jennifer on Twitter at @BrusselsGeek or email tips and comments to jennifer_baker@idg.com.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags Hutchison 3G UKbusiness issuesTelefónica IrelandtelecommunicationregulationmobilegovernmentMergers and acquisitions

Featured

Slideshows

HP channel recognised at 2017 Partner Awards

HP channel recognised at 2017 Partner Awards

The HP Partner Awards 2017 at Shed 10 kicked off with an AMD-sponsored hackers lounge, a mysterious gaming style area filled with dry ice and red lasers, the waiters wearing Mr Robot style masks.

HP channel recognised at 2017 Partner Awards
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
HP re-imagines education through Auckland event launch

HP re-imagines education through Auckland event launch

HP New Zealand held an inaugural Evolve Education event at Aotea Centre in Auckland, welcoming over 70 principals, teachers and education experts to explore ways of shaping and enhancing learning using technology.

HP re-imagines education through Auckland event launch
Show Comments