On Monday 9 July, the European Commission cleared the planned acquisition of UPC Austria (UPC) by T-Mobile Austria (TMA), as it considered that the transaction would not create competition distortions on single market.
Both companies are active in fixed-line (UPC) or mobile (TMA) telecommunications services on Australian soil. Following the notification of the transaction on 18 May of this year, the Commission carried out an examination to determine whether some of their activities, for instance offering Internet access services to a residual clientele, could suffer negative consequences in terms of competition if the plan was approved.
The institution took the view that the impact of the transaction would be limited, for instance due to significant differences in technologies and characteristics between UPC's fixed-line Internet access products and TMA's mobile broadband products. The Commission also concluded that the merged entity would face significant competition from other businesses and that it would not be able to remove or sideline its rivals in either fixed-line or mobile telecommunications.
The institution therefore gave its green light to the transaction, which it considers is compatible with EU rules on mergers. (Original version in French by Lucas Tripoteau)