Poland’s Office of Competition and Consumer Protection (UOKiK) has given its conditional approval to the take-over of Multimedia Polska by Vectra.
In a statement, it says that in order to complete the acquisition of the country’s third largest operator, the second largest will have to sell networks in eight cities and give customers the option to change provider in a further 13.
UOKiK’s decision follows the second stage of an investigation into the proposed transaction in which market research showed that it would lead to a restriction of competition in local markets.
Commenting on the development, UOKIK’s VP Michal Holeksa said: “The condition imposed by us applies to a total of 21 localities. It consists of two parts. The first is structural in nature, i.e. it consists of selling networks. This will apply to eight cities in which the shares of concentration participants are the largest. In the remaining 13, Vectra will have to allow customers to change operators without costs”.
In the eight cities where Vectra will have to sell networks, the operator will have to create new companies into which all its assets are placed. The buyers will not be allowed to belong to, or to be jointly controlled by, Vectra and will have to be approved by UOKiK.
Meanwhile, in the 13 remaining cities, within seven months of the decision being made final Vectra will have nine months to inform customers that they can terminate their pay-TV or broadband contract free of charge.
UOKiK notes that its decision is not final and the applicant can appeal to the Court of Competition and Consumer Protection (SOKiK).
As previously reported by Broadband TV News, Vectra first notified the UOKiK of its intention to buy Multimedia Polska in August 2018.
Earlier in the year, Liberty Global’s UPC Polska withdrew its offer to Multimedia Polska.
