The European Commission (EC) has told Orange and MásMóvil that it believes their proposed merger may reduce competition in the retail supply of mobile and fixed internet services as well as of multiple-play bundles in Spain.
In a statement, it adds that it opened an in-depth investigation to assess if the proposed transaction may restrict competition in the Spanish markets for the retail supply of: (i) mobile telecommunications services; (ii) fixed internet access services; and (iii) multiple-play bundles, including fixed mobile convergent ones.
The investigation included, among others, analysing internal documents provided by the parties and gathering views from competitors, suppliers, as well as customers.
The Commission says that it is concerned that the proposed merger may lead to significant price increases for affected retail customers across the Spanish market. Predicted anticompetitive effects are substantial even after taking potential cost savings into account, in a context where competition has been a driving force for investment and quality of services in the Spanish market.
According to the EC, its ‘Statement of Objections’ is a formal step in an investigation and does not prejudge the outcome of the investigation.
Orange and MásMóvil now have the opportunity to reply to the Commission’s Statement of Objections, to consult the Commission’s case file and to request an oral hearing.
As previously reported by Broadband TV News, Orange and MásMóvil signed a binding agreement in July 2022 following a period of exclusive negotiations.
The transaction would be worth €18.6 billion.
