Brussels, 04/12/2014 (Agence Europe) - On Thursday 4 December, the European Commission announced that it was to open an in-depth investigation to determine whether the planned acquisition of Jazztel p.l.c., a telecommunications company registered in the United Kingdom but operating mainly in Spain, by its French rival, Orange S.A, complies with the EU mergers regulation.
In Spain, Orange operates mobile and fixed telecommunication networks, while Jazztel operates a fixed telecommunication network and offers mobile telecommunication services through the Orange network. The planned operation would reduce the number of fixed telecommunication service providers present nationally from four to three. The merged entity would not be in a dominant position, but the Commission fears that the proposed transaction would significantly reduce competitive pressure for fixed Internet access services and fixed-mobile multiple play offers. The loss of Jazztel as an important competitive force “could lead to price increases for these services for customers in Spain”, the Commission explains. The opening of an in-depth investigation does not prejudge the outcome of the investigation. The Commission now has 90 working days (until 24 April 2015) to take a decision. (LC)