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Operators agree to sell customers, provide favourable wholesale network access to new virtual player.
As expected, the European Commission on Thursday approved Liberty Global’s acquisition of Belgian mobile operator Base, after the companies agreed to several concessions designed to preserve competition.
"We have made sure that Liberty Global’s merger with Base will not reverse the trend of declining mobile prices in Belgium in recent years," said competition commissioner Margrethe Vestager, in a statement.
Liberty Global agreed to acquire Base for €1.33 billion from KPN in April 2015 with a view to merging it with its local cable company and MVNO, Telenet.
The deal prompted the European Commission to open an in-depth investigation into its effects on competition in the Belgian mobile market.
In a bid to win over any sceptics, Liberty and Base in November agreed to sell the latter’s JIM Mobile and Mobile Vikings branded customers to Flemish TV and radio station operator Medialaan.
The companies have also agreed to provide Medialaan with wholesale mobile network access on favourable terms to allow it to compete effectively in the market.
"Without effective commitments, a merger of these two dynamic players would have significantly reduced competition, with a risk of higher prices and less choice and innovation for Belgian mobile consumers," the European Commission said on Thursday.
While Brussels maintains that every merger is judged on its own merits, Thursday’s decision to approve the transaction will no doubt be welcomed by CK Hutchison, which is bidding to merge its 3UK unit with O2.
Hutchison on Thursday made a series of promises, including a five-year price freeze, hefty investment, and selling network capacity, in order to convince Brussels to green-light the deal.
The Commission is preparing to issue a statement of objections to the planned merger, and Ofcom CEO Sharon White also recently expressed deep concerns about the proposed tie-up.
