KPN's cable buy faces antitrust scrutiny

Michael Carroll
09 Aug 2011

The Netherlands’ anti-competition authority has stymied incumbent KPN’s plans to expand its cable operation by acquiring rival CAIW.

Nederlandse Mededingingsautoriteit (NMa) believes KPN’s plan will limit competition in the domestic cable-TV, Internet and fixed telecom markets, and today announced the operator will need to seek its approval to proceed with the acquisition.

The regulator is specifically concerned that KPN’s commitment to open its optical fiber ducts to competitors isn’t sufficiently attractive to ensure adequate competition is maintained in the market in the event the acquisition goes ahead.

To proceed with the purchase, KPN must now submit an application to the NMa, which will investigate the competitive impact of the deal in a process that could take up to 13 weeks to complete.

KPN stated it would provide open access to other operators when it revealed its plan to acquire CAIW’s service provider and network leasing contracts in May. The incumbent argues the purchase will boost its position in domestic TV and broadband services.

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