PPF Telecom says it is dismayed by a regulatory decision taken in Bulgaria by the country’s Commission for Protection of Competition (CPC) that will lead to “enormous concentrations of market share and power in the hands of Bulgarian telecom operator Vivacom and its ultimate owner, United Group”.
In a statement, it says that “CPC has given its approval to transactions that will lead to Vivacom controlling close to 70% and 50% of the internet access market respectively in the region of Rousse and the regions of Varna, Razgrad, Silistra and Sofia City. This decision was taken despite two years of court hearings and following a court-ordered in-depth review that shared the market’s concerns about the concentration of market power”.
It adds that “Yettel Bulgaria and PPF Telecom believe the CPC’s decision shows blatant disregard for recent European rulings that have prevented transactions that would have created regional concentrations of market power. PPF Telecom and its Yettel and CETIN companies have always advocated for robust, competitive and diverse markets, which offer consumers the freedom of choice, encourage price competition”.
Broadband TV News notes that the Yettel CETIN companies are part of PPF Telecom, which is owned by the Czech Republic’s PPF Group.
PPF Group, which also owns the Bulgarian national commercial broadcaster bTV, has invested nearly BGN2 billion (€1.02 billion) in the country’s telecom and media sectors.
PPF Telecom goes on to say that “CPC decision-making has raised our concerns with regard to its forthcoming review of the proposed acquisition of Bulsatcom’s infrastructure by Slovenia Broadband, which is 100% owned by United Group. If this proposed acquisition is approved, it would lead to a total concentration of the whole national market and infrastructure power far exceeding the normal thresholds acknowledged in all other EU markets”.
It continues: “CPC decision dated 15th June 2023 highlights Vivacom’s leading position in Bulgaria’s television distribution market, where it holds a 32.9% share. Vivacom also leads the fixed internet market, controlling 31.4% of the total market. If Vivacom’s acquisition of Bulsatcom’s infrastructure is approved, competition will be further undermined, with them jointly controlling close to 70% of the national TV distribution market and 40% of the national internet access market. These market shares are unheard of in any other European Union country. They would weaken competitive pressure in Bulgaria’s bundled services market, potentially leading to fewer choices for consumers and higher prices”.
PPF Telecom concludes by urging all relevant authorities to review the proposed transactions. It also says it intends to raise these matters with the European Commission.
Similar concerns about these proposed transactions in Bulgaria have also been raised by A1 Group.
