On Monday 8 October, the European Commission approved the planned acquisition of Com Hem by Tele2, as it considered that the operation was unlikely to have a negative impact on competition in the telecommunications sector.
Both companies operate in Sweden, where Com Hem is principally active in fixed communications and television, while Tele2's activities are mostly in the field of mobile communications. However, both companies offer fixed and mobile telecommunication services to a certain extent.
The examination of this planned acquisition, which was notified to the Commission on 3 September, allowed the institution to note that the impact of the operation on the market would be limited, as Com Hem is only a marginal player in mobile telecommunications and fixed telecommunication activities are limited for Tele2. The institution therefore concludes that the companies are not currently direct competitors, but carry out complementary activities.
The Commission then considered that the future joint entity would still face significant competition due to the presence of major players on the retail telecommunications market on Swedish soil.
Finally, concerning the 'conglomerate' plank, referring to bundled multiple access services, the institution considered that the merged entity would not be able to remove its competitors from the market.
It therefore gave its green light to the planned operation as notified by the two companies. (Original version in French by Lucas Tripoteau)