The European Commission opened, on Monday 3 April, an in-depth investigation to assess, under the EU Merger Regulation, the proposed creation of a joint venture by Orange and MasMovil.
The Commission is concerned that the transaction could reduce competition in the retail supply of mobile and fixed broadband services as well as of multiple-play bundles in Spain.
Orange (France) and MasMovil are respectively the second and fourth largest operators in the retail and wholesale markets for fixed broadband and mobile services in Spain. In total, there are four mobile network operators in Spain: Telefónica, Vodafone, Orange and MasMovil.
The preliminary investigation indicates that Orange and MasMovil are close competitors in the Spanish markets for the retail supply of: - mobile telecommunications services; - fixed broadband access services; - multiple-play bundles, including fixed mobile convergent services.
In particular, the Commission found that this transaction would reduce the number of network operators in Spain, thereby eliminating an innovative and significant competitor. This could lead to higher prices and lower quality of telecommunications services for consumers.
As a result of the transaction, Orange and MasMovil would have the ability and incentive to restrict access of virtual operators to wholesale mobile network and wholesale fixed network access services, which concerns the Commission that has 90 working days, or until 21 August 2023, to take a decision.
Link to the case: https://aeur.eu/f/66o (Original version in French by Lionel Changeur)