The European Commission opened an in-depth investigation on Thursday 28 July to examine the proposed acquisition of VOO and Brutélé by Orange under EU merger rules.
The Commission is concerned that the proposed transaction could reduce competition in the retail markets for the supply of fixed internet services, audiovisual services and ‘multiple-play’ bundles (including fixed-mobile convergent services) in some parts of Belgium.
For Margrethe Vestager, Executive Vice-President responsible for Competition Policy, “Orange has been a successful challenger to Voo/Brutélé’s telecommunication services in parts of Belgium. With our in-depth investigation, we want to make sure that the acquisition of Voo/Brutélé by Orange does not lead to higher prices or less quality for customers in Wallonia and parts of Brussels”.
Orange is a provider of retail mobile and fixed telecommunications services in Belgium.
VOO and Brutélé together are leading providers of retail fixed and mobile telecommunication services, through their own mobile network and the fixed networks of third parties that they use.
The Commission is concerned that the transaction may:
- reduce the number of operators from three to two in the areas covered by VOO’s and Brutélé’s fixed networks, thereby removing an innovative and significant competitive constraint from the relevant markets;
- increases the likelihood of coordination on the affected retail markets between the remaining operators in the areas covered by VOO and Brutélé’s fixed networks;
- increase the merged entity’s bargaining power on the market for the wholesale acquisition of TV channels;
- impact the deployment of third party mobile networks following the migration of VOO’s mobile customers (currently hosted on third party mobile networks) to Orange’s mobile network. (Original version in French by Lionel Changeur)