Liberty Global, Vodafone’s $22 Billion Cable Deal Under Investigation by EU
The European Commission has started an in-depth probe into Vodafone’s proposed acquisition of a raft of Liberty Global assets in Europe. The commission cited concerns that the deal could reduce competition in Germany and the Czech Republic.
“It’s important that all EU consumers have access to affordable and good quality telephone and TV services,” Commissioner Margrethe Vestager, who is in charge of competition policy, said. “Our in-depth investigation aims to ensure that Vodafone’s acquisition of Liberty Global’s telecommunications businesses in Czechia, Germany, Hungary and Romania will not lead to higher prices, less choice and reduced innovation in telecoms and TV services for consumers.”
In May, Liberty Global and Vodafone finally agreed to a long-expected deal for a range of cable operations in Europe. The agreement would see Vodafone will fork out $22.7 billion for Liberty’s cable operations in Germany, Hungary, Romania and the Czech Republic.
The commission outlined specific concerns such as areas where both parties have cable networks or overlapping products and services, the merger of which could squeeze rivals offering TV, telecoms, and broadband services.
In terms of TV, it said the “transaction could substantially increase the bargaining power of the merged entity vis-à-vis TV broadcasters” and this “could negatively impact these broadcasters’ ability to stay competitive and to invest.”
Related stories
EU Antitrust Chief Margrethe Vestager on Google, Hollywood and That 'Borgen' Comparison
Google Fined a Record $5 Billion by European Antitrust Officials
Liberty Sells Vodafone Multiple European Cable Assets in $22.7 Billion Deal
Subscribe to Variety Newsletters and Email Alerts!
