PolicyPulse.pro identifies the news that matters most to your company and helps you understand the business impact.
31.10.2024 | 🇳🇱 Dutch competition authority
The ACM is investigating the acquisition plans of Glaspoort, a joint venture of KPN and APG, to acquire part of Delta's fiber-optic network in the Netherlands. This acquisition could strengthen KPN's market position and potentially lead to negative effects on consumers, such as price increases.
ACM's preliminary investigation suggests a risk of reduced competition in fixed telecom networks due to the acquisition. KPN's roll-up strategy of acquiring smaller fiber-optic networks over the years has raised concerns about market dominance and potential price pressures on consumers.
Most of KPN's previous small acquisitions did not require ACM notification due to lower turnovers. However, the involvement of Glaspoort in this acquisition has triggered the need for scrutiny. ACM advocates for legislative changes to assess such acquisitions by larger competitors for anticompetitive risks.
Glaspoort and Delta will need to apply for an acquisition license, and ACM will conduct a follow-up investigation to evaluate competition risks. The focus will include assessing the competitive pressure from cable providers like VodafoneZiggo on the fiber-optic network access market.
ACM's concentration control aims to ensure sufficient competition post-mergers, acquisitions, or joint ventures to maintain market quality, competitive prices, and innovation. The authority evaluates whether such consolidations negatively impact competition, ultimately affecting consumers, and decides on approval accordingly.
© 2024 PolicyPulse. All rights reserved.
See something you like or don't like? Let us know!