On Tuesday 2 April, the European Commission declared that it had vetoed a proposal by Malta’s telecoms regulator, the Malta Communications Authority (MCA), to amend the regulation of its telecoms infrastructure market.
The plan, which was initially submitted to the Commission on 28 December 2023, was to impose new regulations on the wholesale infrastructure market, whether physical or virtual.
This regulation mainly targeted the island’s incumbent operator, ‘GO’, identifying it as a major operator and creating a competitive imbalance. The MCA therefore proposed to regulate it.
However, after investigation, the Commission found that ‘GO’s position did not give rise to a competition problem and that MCA’s justification on this point was insufficient. The Commission also suggests that MCA take into account the competitive pressure exerted by the cable network of Melita, the country’s second largest operator, which has a higher retail market share.
Through this decision, the Commission underlines the importance of a competition analysis that takes into account all market dynamics, “but does not prejudge the existence of a competition problem at the retail level, which has yet to be proven by the regulator”.
It also points out that it is the responsibility of national regulatory authorities “to establish conditions that promote sustainable competition and facilitate efficient investment in infrastructure”.
The Maltese telecommunications authority must now review its conclusions in the light of the Commission’s objections and notify the Commission again. (Original version in French by Isalia Stieffatre)