BRUSSELS (dpa-AFX) - The European Commission Tuesday said it has approved the proposed acquisition of Jazztel plc, a telecommunications company registered in the UK but mainly active in Spain, by rival Orange SA of France, under the EU Merger Regulation.
The approval is conditional upon the full implementation by Orange of a number of commitments that will ensure effective competition on the fixed internet access services markets after the takeover.
The Commission initial concerns over the acquisitions included the possibility that the merger could have led to higher prices of fixed internet access services for Spanish consumers. Orange, thereafter, submitted commitments to ensure that a new competitor can enter the retail markets involving fixed internet access services. The commitments removed the Commission's initial concerns.
Margrethe Vestager, Commissioner in charge of competition policy, observed, 'A very important thing before agreeing to Orange's takeover of Jazztel was to make sure that consumers in Spain would not suffer from higher prices for fixed internet access services. With the remedies in this merger a new player may enter the market and compete as strongly as Orange and Jazztel do today.'
Copyright RTT News/dpa-AFX